What is uneven cash flow stream?

What is uneven cash flow stream?

Uneven Cash Flow Stream. Any series of cash flows that doesn’t conform to the definition of an annuity is considered to be an uneven cash flow stream. For example, a series such as: $100, $100, $100, $200, $200, $200 would be considered an uneven cash flow stream.

What is the formula for calculating cash flow?

Cash flow formula:

  1. Free Cash Flow = Net income + Depreciation/Amortization – Change in Working Capital – Capital Expenditure.
  2. Operating Cash Flow = Operating Income + Depreciation – Taxes + Change in Working Capital.
  3. Cash Flow Forecast = Beginning Cash + Projected Inflows – Projected Outflows = Ending Cash.

How do you solve uneven cash flows?

When a cash flow stream is uneven, the present value (PV) and/or future value (FV) of the stream are calculated by finding the PV or FV of each individual cash flow and adding them up.

How do you calculate uneven cash flow?

Calculate the present value of an uneven cash flow stream. The present value is equal to the cash flow in year zero plus the sum from year one to the terminal year of CFn / (1 + r)^n, where CFn is the cash flow in year “n” and “r” is the discount rate. The terminal year is the final year of an analysis period.

How do you calculate the future value of cash flows?

Future Value of a Single Cash Flow With a Constant Interest Rate. If you want to calculate the future value of a single investment that earns a fixed interest rate, compounded over a specified number of periods, the formula for this is: =pv*(1+rate)^nper. where, pv is the present value of the investment;

What is present value in accounting?

Present value (PV) is an accounting term meaning the value today of some amount of money expected to be available one or more years in the future.

What is the formula for the present value of money?

Present Value Formula. The present value of money is equal to the future value divided by the interest rate plus 1 raised to the t power, where t is the number of months, years, etc. Make sure to use the same units of time for both the interest rate and the time.

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