Question
*Pretty sure this is uneven cash flow stream... wanted to make sure my logic is correct* (1.) A firm makes investments of $2,000 this year,
*Pretty sure this is uneven cash flow stream... wanted to make sure my logic is correct*
(1.) A firm makes investments of $2,000 this year, $4,000 next year, and $2,500 the following year. This form of cash flow pattern is a(n) _____.
ordinary annuity
annuity due
uneven cash flow stream
lump-sum payment
compounded cash flow
(2.) The present value of an uneven cash flow can be determined by using the annuity equations.
True
False
Not sure on this one.... false because uneven cash flows are not consistent?
(3.) Everything else equal, the greater the number of compounding periods per year, the greater the effective rate of return that is earned on an investment.
True
False
On face value I would say True... but this one seems like a straw man fallacy. Any insight is appreciated.
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