Originally Posted by

**promathlete**
I know that if each side of a comparison date contains the same type of cashflow (both inflow or both outflow), then you can find the value of the cashflows by just adding the accumulated values of all cash flows to the left (and including comparison date) and the present values of all cash flows to the right.

Example:

Suppose you have the following cashflows with an annual effective rate of interest of 1%. CF(t) means the cashflow at the end of year t:

CF(0)=1

CF(1)=3

CF(2)=7

CF(3)=4

CF(4)=1

Then the value at time t=2 is

1*1.01^2+3*1.01+7+4*1.01^-1+1*1.01^-2.

So, how do you calculate the value of the cashflows if one side of the comparison date contains both cash inflows and outflows? Do you add the difference of the accumulated values of past cash inflows and outflows to the difference of the present values of future cash inflows and outflows? Please let me know if you need clarification of my question. Thanks.