Which of the following statements is CORRECT?
A) some of the cash flows shown on a time line can be in the form of annuity payments, but none can be uneven amounts.
B) a time line is not meaningful unless all cash flows occur annually.
C) time lines are useful for visualizing complex problems prior to doing actual calculations.
D) time lines cannot be constructed in situations where some of the cash flows occur annually but others occur quarterly.
E) time lines cannot be constructed for annuities where the payments occur at the beginning of the periods.

Question

Quizplus · Accepted Answer

Time lines are useful for visualizing complex problems prior to doing actual calculations, as they provide a clear and organized representation of the cash flows over time. They can include both annuity payments and uneven amounts, and do not require all cash flows to occur annually. Additionally, they can be constructed for annuities where the payments occur at the beginning or end of the periods, as long as the timing of the payments is taken into account.

Which of the Following Statements Is CORRECT