11.12 Uneven Cash Flows

Not all cash flows series are as neat as annuities. In many instances, the cash flows are unequal or “uneven.” Using the TVM Tables, calculate both the PV and FV for the series of Uneven Cash Flows presented below. Assume a periodic discount/compound rate of 6%.

The method by which this exercise will be done is the same as that which was done for deriving ordinary annuity factors earlier – except that the cash flows here are uneven. While we have already done a similar exercise earlier involving equal cash flows… well, you know, practice makes perfect!