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Question 2. Distinguish between the following revenue situations using rough sketches: (i) A single positive cash flow at some future year (ii) Different amounts of

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Question 2. Distinguish between the following revenue situations using rough sketches: (i) A single positive cash flow at some future year (ii) Different amounts of positive cash flow in several years up to a final year (iii) An infinite sum of the same positive flow (perpetuity) each year from year 1 (iv) An infinite sum of positive cash flows that grow at a constant rate each year from year 1 (v) An annuity - the same positive cash flow each year e.g. from years 1 to 20 . For each of these five cases say whether you discount using: (a) calculation/spreadsheet/ the Table in Appendix C of Pike et al (b) Appendix D of Pike et al. (c) a formula for infinite life. Question 2. Distinguish between the following revenue situations using rough sketches: (i) A single positive cash flow at some future year (ii) Different amounts of positive cash flow in several years up to a final year (iii) An infinite sum of the same positive flow (perpetuity) each year from year 1 (iv) An infinite sum of positive cash flows that grow at a constant rate each year from year 1 (v) An annuity - the same positive cash flow each year e.g. from years 1 to 20 . For each of these five cases say whether you discount using: (a) calculation/spreadsheet/ the Table in Appendix C of Pike et al (b) Appendix D of Pike et al. (c) a formula for infinite life

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