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Reika [66]
2 years ago
14

UNEVEN CASH FLOW STREAM

Business
1 answer:
vladimir2022 [97]2 years ago
4 0

Answer:

                        Present Value

Stream A                $1,251.247

Stream B                 $1,300.316

Explanation:

<em>The present value  of a future sum is the amount that would be invested today at the prevailing interest rate to have the sum</em>

Stream A

(100 × 1.08^9-1) + (400× 1.08^-2) + (400× 1.08^-3) + (400× 1.08^-4) + (300× 1.08^-5) = $1,251.247

Stream B

(300 × 1.08^9-1) + (400× 1.08^-2) + (400× 1.08^-3) + (400× 1.08^-4) + (100× 1.08^-5) = $1,300.316

                          Present Value

Stream A                $1,251.247

Stream B                 $1,300.316

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The net income reported on the income statement for the current year was $295,000. Depreciation recorded on fixed assets and amo
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To get net cash flow using the indirect method we must make adjustments to the net income.

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Net income 295.000

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3 years ago
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Cheers

8 0
2 years ago
Read 2 more answers
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