Which of the following statements is incorrect with respect to time lines?
A) A helpful tool for organizing our analysis is the time line.
B) Cash flows we receive are called inflows and denoted with a positive number.
C) Cash flows we pay out are called outflows and designated with a negative number.
D) Interest rates are not included on our time lines.

Question

Quizplus · Accepted Answer

Interest rates are often included on time lines to indicate the rate at which cash flows are discounted or compounded over time. Including interest rates helps in understanding the time value of money and in calculating present or future values of cash flows.

Which of the Following Statements Is Incorrect with Respect to Time