Some of the Cash Flows Shown on a Time Line

question 17

True/False

Some of the cash flows shown on a time line can be in the form of annuity payments but none can be uneven amounts.

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Definitions:

Average Rate of Return

The ratio of the average annual profit earned through an investment to the original investment, expressed as a percentage.

Total Income

The sum of all earnings or revenues a person or company generates before any deductions.

Cash Payback Period

The time it takes for an investment to generate an amount of cash flow equal to the initial investment cost.

Annual Net Cash Flows

The amount of cash that a company generates or uses in a given year after all income and expenses are accounted for.