Solved: Present value of the uneven series of cash flows, Finance Basics

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Present value of the uneven series of cash flows

Problem:

To find the present value of an uneven series of cash flows, you must find the PVs of the individual cash flows and then sum them. Annuity procedures can never be of use, even if some of the cash flows constitute an annuity (for example, $100 each for Years 3, 4, 5, and 6), because the entire series is not an annuity. Is this statement true or false? Explain.

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Finance Basics: Present value of the uneven series of cash flows

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