Question

DOUTONUL am to 16 (7.4) A FV with multiple cash flows can be computed by finding the Vs Twortod 1 Toll of each deposit and then summing the separate _. A PV with multiple og omon cash flows can be calculated by separately computing the _ of each cash flow and then summing the separate d voor od to noiog to inmoqrbno dod obuboni obrtion and sold sunod bortoq don nisborg) o zidi ni biagini

Answer 1

A FV with multiple cash flows can be computed by calculating the future value of each cash flow using their specific required rate of returns and time period to maturity of each deposit and then summing the separate future cash flows calculated. A PV with multiple cash flows can be calculated by separately computing the Present Value of Each cash flow using their required rates and time period and then summing the present values calculated.