Respuesta :
Answer: equal to the sum of all the cash flows
Explanation: Cash flow is defined as the sum of revenues and expenditures over a specific time period. A business with multiple cash flows depicts that such business has more than one investment or payment of varying sizes, that earns varying interest rates, that occur at different or the same time but all have a certain specific value sometime in the future. Business often would want to determine the future value of multiple cash flows it has. This is given as the sum of the future value of each cash flow which must be calculated to the same point in the future. These payments can have varying sizes, occur at varying times, and earn varying interest rates, but they all have a certain value at a specific time in the future.
The steps involved in finding the future value of multiple cash flows is:
- define when the future is.
- determine the future value of each cash flow by applying the formula FV = PV (1 + i)∧n where PV is present value and n, time period
- add all of the future values together.