When the annual cash flows from an investment are unequal, the appropriate table to use is in the calculation of net present value is the

Question

Quizplus · Accepted Answer

When dealing with unequal annual cash flows from an investment, the correct table to use for calculating the net present value (NPV) is the "present value of 1 table." This table helps in determining the present value of each cash flow individually, since they cannot be treated as a uniform series of payments (annuity).

When the Annual Cash Flows from an Investment Are Unequal