Which of the Following Statements Is NOT Correct

question 97

Multiple Choice

Which of the following statements is NOT correct?

• A)A time line is meaningful only if all cash flows occur annually.
• B)Time lines can be constructed even in situations where some of the cash flows occur annually but others occur quarterly.
• C)Time lines can be constructed for annuities where the payments occur at either the beginning or the end of periods.
• D)The cash flows shown on a time line can be in the form of annuity payments, but they can also be uneven amounts.

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Definitions:

Transactional Leaders

Leaders who focus on the role of supervision, organization, and group performance, often through a system of rewards and penalties.

Present Value

The current worth of future money or cash flow streams, estimated with a specific rate of return.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.

Discount Rate

The discount rate utilized in DCF analysis for assessing the present worth of upcoming cash flows.