You Are Trying to Use Your fiNancial Calculator to Solve

question 267

Multiple Choice

You are trying to use your financial calculator to solve a present value problem that has unequal cash flows. You input monies you receive as positive values. Which one of the following statements
Is true?

• A) Cash outflows should be input as positive values for each year in which they occur.
• B) Any cash flow occurring today should be input as a Year 1 cash flow.
• C) You have annual cash flows starting with Year 1 of $100, $0, $200, and $300. The $300 cash flow should be input as occurring in year 3.
• D) Because you are solving for the present value, any cash flow that occurs today can be ignored.
• E) A negative present value indicates that this series of cash flows causes you to lose money today given a certain discount rate.

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