When the annual cash flows from an investment are unequal, the appropriate table to use 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

When the annual cash flows from an investment are unequal, the appropriate table to use is the "present value of 1 table." This table is used to calculate the present value of individual future cash flows that are not the same amount each year, allowing for the discounting of each cash flow separately.

When the Annual Cash Flows from an Investment Are Unequal