It is smart to choose to: Pay money before receiving money. Pay money sooner than later. Receive money later for safety. Receive money sooner than later. Question 2 1 pts Time value of money teaches us that we can only compare money flows if they: Have been adjusted for their time value. Occur at the same time. All take place at the same time. Are all the same amount. Question 3 1pts The difference between simple interest and compound interest is that with compound interest: You use different variables than when calculating simple interest. Future value is always smaller than with simple interest. You earn interest on previous interest. The future value calculation is much simpler. Question 4 1pts Which of the following must be true for a set of cash flows to be an annuity? The cash flows must be equal in direction of flow, risk, and spacing. The cash flows must be identical in amount, direction of flow, and spacing. The cash flows must be equal in amount, risk, and direction of flow. The cash flows must equal in amount, risk, and spacing