Question

Which of the following statements is CORRECT? a. The cash flows for an ordinary (or deferred) annuity all occur at the beginning of the periods. b. If a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity. c. The cash flows for an annuity due must all occur at the beginning of the periods. d. 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. e. 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.

Answer #1

The cash flows for an annuity due must all occur at the beginning of the periods because this will be discounted accordingly when they are occurring at the beginning of the periods.

other statements are not representing the true facts because cash flows of an ordinary annuity all must not be operating at beginning of the period or series of unequal cash flows statements are not true.

Correct answer would be option ( C)The cash flows for an annuity due must all occur at the beginning of the periods.

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a. A time line is not meaningful unless all cash flows occur
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b. Time lines are not useful for visualizing complex problems
prior to doing actual calculations.
c. Time lines cannot be constructed in situations where some of
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d. Time lines can be constructed for annuities where the
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e. Some of...

Which of the following statements on time lines is CORRECT?
Group of answer choices
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2.A time line is not meaningful unless all cash flows occur
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3.Time lines are not useful for visualizing complex problems
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Based on your understanding of annuities, answer the following
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Which of the following statements about annuities are
true? Check all that apply.
Annuities are structured to provide fixed payments for a fixed
period of time.
When equal payments are made at the beginning of each period for
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There are two categories of cash flows: single cash flows,
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Which of the following statements about annuities are true?
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that can be thought of as an infinite annuity.
An annuity due earns more interest than an ordinary annuity of
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An annuity...

Which of the following statements is correct?
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not enough internally generated cash for a firm to fund all of its
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referred to as “lump sums,” and annuities. Based on your
understanding of annuities, answer the following questions.
Which of the following statements about annuities are
true? Check all that apply.
Annuities are structured to provide fixed payments for a fixed
period of time.
When equal payments are made at the beginning of each period for
a certain time period, they are treated as an annuity...

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If a project’s NPV is > 0, the IRR must be less than WACC
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The statement of cash flows and income statement are for a
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None...

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The synodic period of the moon is easy to observe if you are
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