Which of the Following Statements Is CORRECT

question 133

Multiple Choice

Which of the following statements is CORRECT?

• A) if some cash flows occur at the beginning of the periods while others occur at the ends, then we have what the textbook defines as a variable annuity.
• B) the cash flows for an ordinary (or deferred) annuity all occur at the beginning of the periods.
• C) if a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity.
• D) the cash flows for an annuity due must all occur at the beginning of the periods.
• E) the cash flows for an annuity may vary from period to period, but they must occur at regular intervals, such as once a year or once a month.

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Definitions:

Initial Investments

The initial amount of money that is put into a project, business, or investment.

Initial Investments

The upfront capital or resources expended to start a project, acquire an asset, or establish a business.

Income Taxes

Taxes imposed by the government on the income earned by individuals and corporations.

Working Capital

The difference between a company's current assets and current liabilities, indicating the available short-term resources to fund operations.