To Solve Future Value Problems with Multiple Cash Flows Involves

question 83

Multiple Choice

To solve future value problems with multiple cash flows involves which of the following steps?

• A) First, draw a time line to make sure that each cash flow is placed in the correct time period.
• B) Second, calculate the future value of each cash flow for its time period.
• C) Third, add up the future values.
• D) All of the above are necessary steps.

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