The Present Value (PV) of a Stream of Cash Flows

question 4

True/False

The present value (PV) of a stream of cash flows is just the sum of the present values of each individual cash flow.

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Definitions:

Inventory

The complete inventory of products and materials a company possesses, meant for sale or to be used in manufacturing.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Accounts Receivable

Funds that customers owe to a business for products or services provided but for which payment has not yet been received.

Unearned Sales Revenues

A liability on a company's balance sheet that represents revenue received before the company has delivered goods or services.