Solved: Present value of an uneven series of cash flows, Finance Basics

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Present value of an uneven series of cash flows

Problem: Explain whether this is true or false and indicate why:

"To find the present value of an uneven series of cash flows, you might find the PVs of the individual cash flows and then sum them. Annuity procedures can never be of use, even if some of the cash flows constitute an annuity (for example, $100 cash for Years 3, 4, 5, and 6), because the entire series is not an annuity."

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Finance Basics: Present value of an uneven series of cash flows

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