Which of the Following Statements Is Correct

question 98

Multiple Choice

Which of the following statements is correct?

• A) Cash flow time lines are helpful graphical displays for situations involving simple annual interest but are not useful when time periods are more frequent than annual.
• B) The future value of an annuity due is equal to the future value of an otherwise identical regular annuity with interest compounded on each payment for one additional period.
• C) There is no precise method of calculating either present values or future values when fractional time periods are involved.We must instead use rough approximations.
• D) The terminal value of a stream of uneven cash flows is found by simply summing up all the cash flows.
• E) The annual percentage rate (APR)cannot be equivalent to the effective annual rate (EAR).

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Definitions:

Describing A Future State

The process of articulating a vision or detailed description of a desired outcome or situation that an organization or individual aspires to achieve in the future.

Creating A Vision

Creating a vision involves formulating a clear and inspirational idea of what an organization or individual aims to achieve in the future, guiding decisions and actions.

Managing The Transition

The process of guiding and supporting individuals, teams, or organizations through significant changes or developments.

Resistance To Change

The reluctance or refusal to accept or adapt to changes in the workplace, technology, tradition, or personal life, often due to fear or uncertainty.