Question

Which of the following statements on time lines is CORRECT?

Group of answer choices

1.Time lines cannot be constructed to deal with situations where some of the cash flows occur annually but others occur quarterly.

2.A time line is not meaningful unless all cash flows occur annually.

3.Time lines are not useful for visualizing complex problems prior to doing actual calculations.

4.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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Answer 1

The correct statement is option (4) timelines can be constructed where some of the payment constitute an annuity but others are unequal and thus are not part of the annuity. It can be constructed when there will be some payments who are unequal and they are not the part of annuity

Rest of the statement of false because timelines is meaningful unless all cash flows after annually or timelines are also useful for visualisation of the complex problems.

Correct answer is option (4).