The appropriate table to use when an investment promises to return unequal cash flows is the
A) future value of 1 table.
B) future value of annuity table.
C) present value of 1 table.
D) present value of annuity table.

Question

Quizplus · Accepted Answer

The appropriate table for investments with unequal cash flows is the "present value of 1 table" because it allows for the calculation of the present value of each individual cash flow, which can vary in amount, unlike annuities which assume equal cash flows.

The Appropriate Table to Use When an Investment Promises to Return