Quiz Ch 05 – T/F Importance of Non-Annual Cash Flows in Time Lines
Fundamentals of Financial Management, Concise
Brigham and Houston
09th Edition
True or false: A time line remains meaningful even when not all cash flows transpire annually.
True or false: A time line remains meaningful even when not all cash flows transpire annually.
True or false: When a bank compounds savings accounts quarterly, the nominal rate will surpass the effective annual rate.
True or false: A perpetuity represents a specialized category within annuities.
True or false: With a positive discount (or interest) rate, the present value of an anticipated series of payments will invariably surpass the future value of the same series.
True or false: Present values decrease with an increase in the time to the cash flows.
True or false: Time lines can be devised for annuities with payments occurring at either the beginning or end of periods.
True or false: Time lines can indeed be established in situations where cash flows take place both annually and quarterly.
True or false: A time line can include annuity payments, although it may not contain uneven amounts.
True or false: A time line can display a combination of annuity payments and varying amounts.
True or false: Time lines can be formulated for annuities with payments occurring either at the beginning or end of periods.