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QUESTION 2 Practice Drawing Timelines! Purpose: This section describes how to draw a timeline and visualizing the problem being presented. It is important because a
QUESTION 2 Practice Drawing Timelines! Purpose: This section describes how to draw a timeline and visualizing the problem being presented. It is important because a time problem that is set up incorrectly will lead to incorrect answers. Task: Read Section 5-1 in the textbook. For each of the descriptions below, draw the timeline on your own. Inserted a picture of your timeline (the picture can be a jpeg or pasted in a word document). Criteria: Full points will be based three separate timelines attached as a picture. Your work should be original and not copied, borrowed, or obtained from another student (this would be cheating as defined by Texas Tech University and stated in the syllabus) 1. Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate = 6% (These are uneven cash flows- there is no pattern) 2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)) 3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date) Attach File Browse Local Files Browse Content Collection
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