CFA Level 1
Quantitative Methods

Calculating NPV from Uneven Cash Flows

Easy Time Value Of Money Uneven Cash Flows

Anna is evaluating a series of cash flows that she expects to receive from an investment over the next four years. The expected cash flows are as follows:

  • Year 1: $1,000
  • Year 2: $1,500
  • Year 3: $2,000
  • Year 4: $2,500

To assess the net present value (NPV) of these cash flows, Anna plans to discount them at an annual rate of 10%. What is the NPV of these cash flows?

Hint

Submitted11.8K
Correct9.0K
% Correct76%