If a Few Intermediate Cash Flows in Valuing a Stream

question 16

Essay

If a few intermediate cash flows in valuing a stream of cash flows are zero can we delete those points on the timeline and squeeze the timeline to show only nonzero cash flows?

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Definitions:

Rational

Based on or in accordance with reason or logic; capable of making sensible or logical decisions.

Antecedent

A preceding event, condition, or cause that logically goes before something else.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Cohesiveness

The property of a group that affectively binds people, as group members, to one another and to the group as a whole, giving the group a sense of solidarity and oneness.