ACCT 201 Lecture Notes - Lecture 8: Cash Flow, Net Present Value, Get This
Document Summary
This cpa covers section 5. 4 mixed streams and. Section 5. 5 compounding interest more frequently than annually . This cpa should be completed prior to the start of class on monday, sept. This is the last cpa before the first exam. In the last cpa we explored how to determine the present value and future value of both a lump sum, along with a stream of equal payments (i. e. , an annuity). And we learned about compounding, with interest compounded on an annual basis. But, there are many instances in the world of finance where cash flows, out or in, or not uniform. They are unequal, or mixed, streams of payments. In addition, interest can be compounded on a basis other than annually, such as quarterly, monthly, or daily. In this cpa we use a financial calculator to explore and solve more difficult time value of money questions.