Which of the Following Statements Is CORRECT

question 158

Multiple Choice

Which of the following statements is CORRECT?

• A) A time line is not meaningful unless all cash flows occur annually.
• B) Time lines are not useful for visualizing complex problems prior to doing actual calculations.
• C) Time lines cannot be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly.
• D) Time lines can only be constructed for annuities where the payments occur at the end of the periods, i.e., for ordinary annuities.
• E) Time lines can be constructed where some of the payments constitute an annuity but others are unequal and thus are not part of the annuity.

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Definitions:

Helium Gas

A colorless, odorless, tasteless, non-toxic, inert, monatomic gas, the first in the noble gas group in the periodic table. Its boiling and melting points are the lowest among the elements.

Atm

A unit of pressure; standard atmosphere, approximately equal to the Earth's atmospheric pressure at sea level (101.325 kPa).

°C

A scale and unit of measurement for temperature where 0°C represents the freezing point of water and 100°C represents the boiling point of water at standard atmospheric pressure.

Atm

Standard atmosphere; a unit of pressure defined as 101,325 Pa and used as a reference for atmospheric pressure.