1. What is Uneven Cash Flow PV?

The Uneven Cash Flow Present Value calculation determines the current worth of a series of future cash flows that are not equal in amount. It's essential for investment analysis, capital budgeting, and financial planning where cash flows vary over time.

2. How Does the Calculator Work?

The calculator uses the uneven cash flow PV formula:

Where:

• \( CF \) — Cash flow amount for each period ($)
• \( i \) — Interest rate per period (decimal)
• \( n \) — Period number

Explanation: The formula discounts each future cash flow back to its present value using the time value of money principle, then sums all present values.

3. Importance of PV Calculation

Details: Present value calculation is crucial for investment appraisal, comparing projects with different cash flow patterns, and making informed financial decisions about future income streams.

4. Using the Calculator

Tips: Enter cash flows as comma-separated values (e.g., "100,200,300"), interest rate as decimal (e.g., 0.05 for 5%), and number of periods. Ensure all values are valid (interest rate ≥ 0, periods > 0).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between even and uneven cash flows?
A: Even cash flows are equal amounts each period (annuity), while uneven cash flows vary in amount from period to period.

Q2: How should I format the cash flow input?
A: Enter cash flow amounts separated by commas without dollar signs (e.g., "100,150,200,180").

Q3: What if I have more periods than cash flows?
A: The calculator will use zero for missing cash flows beyond the provided values.

Q4: Can I use percentage for interest rate?
A: No, enter the interest rate as a decimal (e.g., 0.08 for 8%, not 8).

Q5: What are common applications of uneven cash flow PV?
A: Investment analysis, project valuation, bond pricing, and any financial decision involving variable future cash flows.