Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business
Keywords:
Uneven cash flow, Present value formula, Future value formula, Performance rate, Rate of growth, Uneven cash flow income, Economic value addedAbstract
Computational methods for present and future value calculations are difficult when the firm’s cash flow income is uneven. The firm’s decision to invest or borrow based on uneven cash flows needs a simple method to arrive at the present value of uneven cash flows. This paper is an attempt to simplify the current tedious calculations. A methodology to quickly estimate the present/future value of uneven cash flows is invaluable to practitioners in the banking and financial industries.
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Published
04-06-2011
How to Cite
Tessema, A. T. (2011). Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business. International Journal of Banking and Finance, 8(2), 68–73. Retrieved from https://e-journal.uum.edu.my/index.php/ijbf/article/view/8425
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