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Define and differentiate among the four basic patterns of cash flow: (1) a single amount, (2)...

Define and differentiate among the four basic patterns of cash flow:
(1) a single amount, (2) a mixed stream, (3) an annuity, and (4) a perpetuity
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Answer #1

Single cash flows means that how much single cash flow in the future would be worth today. It means a regular stream of cash flow and it is uniform in nature.

A mixed stream of cash flow means which are not regular in nature and which are irregular so they cannot be predicted accurately in advance.

An annuity means cash flow with other income or expenditure involving the same sum of cash flows . it is the receipt or the payment of the equal cash flow for a specific period of time. It is the similar amount of cash which has been set aside for future payments.

Perpetuity is the type of annuity that will last forever. The stream of cash flows continue for unlimited amount of time.

These are the differences between a single mountain mix stream along with an annuity and perpetuity.

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