Which of the Following Statements Best Describes Time Lines

question 17

Multiple Choice

Which of the following statements best describes time lines?

• A) A time line is not meaningful unless all cash flows occur annually.
• B) Time lines are useful for visualizing complex problems prior to doing actual calculations.
• C) Time lines cannot be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly.
• D) Time lines can be constructed only for annuities where the payments occur at the ends of the periods, i.e., for ordinary annuities.

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Definitions:

Operating Cost

The expenses associated with running a business's core operations on a day-to-day basis.

Investment

The allocation of resources, such as capital or time, in expectation of generating future returns.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, taking into account its risk level.

Target Cost

The desired cost of a product as determined by its expected selling price minus desired profit, aimed to ensure competitiveness and profitability.