Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business

Computational methods for present and future value calculations are difficult when the firm’s cash flow income is uneven. The firm’s decision to invest or borrow based on uneven cash flows needs a simple method to arrive at the present value of uneven cash flows. This paper is an attempt to simp...

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Main Author: Ameha Tefera Tessema
Format: Article
Language:English
Published: Universiti Utara Malaysia 2011-06-01
Series:The International Journal of Banking and Finance
Subjects:
Online Access:https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8425
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author Ameha Tefera Tessema
author_facet Ameha Tefera Tessema
author_sort Ameha Tefera Tessema
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description Computational methods for present and future value calculations are difficult when the firm’s cash flow income is uneven. The firm’s decision to invest or borrow based on uneven cash flows needs a simple method to arrive at the present value of uneven cash flows. This paper is an attempt to simplify the current tedious calculations. A methodology to quickly estimate the present/future value of uneven cash flows is invaluable to practitioners in the banking and financial industries.  
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spelling doaj.art-8fdd7e0a6c4d4ed39b93fe7435723b6b2023-01-09T03:08:26ZengUniversiti Utara MalaysiaThe International Journal of Banking and Finance2811-37992590-423X2011-06-0182Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A BusinessAmeha Tefera Tessema0Construction and Business Bank, EthiopiaComputational methods for present and future value calculations are difficult when the firm’s cash flow income is uneven. The firm’s decision to invest or borrow based on uneven cash flows needs a simple method to arrive at the present value of uneven cash flows. This paper is an attempt to simplify the current tedious calculations. A methodology to quickly estimate the present/future value of uneven cash flows is invaluable to practitioners in the banking and financial industries.   https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8425Uneven cash flowPresent value formulaFuture value formulaPerformance rateRate of growthUneven cash flow income
spellingShingle Ameha Tefera Tessema
Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business
The International Journal of Banking and Finance
Uneven cash flow
Present value formula
Future value formula
Performance rate
Rate of growth
Uneven cash flow income
title Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business
title_full Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business
title_fullStr Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business
title_full_unstemmed Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business
title_short Present and Future Value Formulae for Uneven Cash Flow Based on Performance of A Business
title_sort present and future value formulae for uneven cash flow based on performance of a business
topic Uneven cash flow
Present value formula
Future value formula
Performance rate
Rate of growth
Uneven cash flow income
url https://www.e-journal.uum.edu.my/index.php/ijbf/article/view/8425
work_keys_str_mv AT amehateferatessema presentandfuturevalueformulaeforunevencashflowbasedonperformanceofabusiness