Single Cash Flow PV = FV (1+r)n Annuity : FV = PV(1+r) n (1+r)" − 1 (1+r)n−1 * FVA = PMT FVAD = PMT (1+r) r PVA = PMT r 1 1 1 (1+r)n PVAD = PMT (1+r)*(1+r) r r r(1+r)n PMT = PV (1+r)n-1 Perpetuities PVP = PMT r
Single Cash Flow PV = FV (1+r)n Annuity : FV = PV(1+r) n (1+r)" − 1 (1+r)n−1 * FVA = PMT FVAD = PMT (1+r) r PVA = PMT r 1 1 1 (1+r)n PVAD = PMT (1+r)*(1+r) r r r(1+r)n PMT = PV (1+r)n-1 Perpetuities PVP = PMT r
Chapter4: Time Value Of Money
Section4.12: Uneven, Or Irregular, Cash Flows
Problem 1ST
Related questions
Question
If a firm’s earnings per share grew from $1 to $2 over a 10-year period, the total growth would be 100 percent, but the annual growth rate would be less than 10 percent. True or false? Explain. Under what conditions would the annual growth rate actually be 10 percent per year? (LO 4-2 & LO 4-4)
Using one of the equations or multiple in the picture attached.

Transcribed Image Text:Single Cash Flow
PV =
FV
(1+r)n
Annuity
:
FV = PV(1+r) n
(1+r)" − 1
(1+r)n−1 *
FVA = PMT
FVAD = PMT
(1+r)
r
PVA = PMT
r
1
1
1
(1+r)n
PVAD = PMT
(1+r)*(1+r)
r
r
r(1+r)n
PMT = PV
(1+r)n-1
Perpetuities
PVP =
PMT
r
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