Time Line Use the figure for the question(s) below. Date $0 $5000 $5000 Cash flow 1) Which of the following statements regarding timelines is FALSE? A) Timelines are an important first step in organizing and then solving a financial problem. B) We refer to a series of cash flows lasting several periods as a stream of cash flows. C) Not every stream of cash flows can be represented on a timeline. D) A timeline is a linear representation of the timing of the expected) cash flows. 2) Which of the following statements regarding the timeline is FALSE? A) Date 1 is one year from now. B) The $5000 below date 1 is the payment you will receive at the end of the first year. C) The $5000 below date 2 is the payment you will receive at the beginning of the second year. D) Date 0 represents today. 3) Which of the following statements regarding the timeline is FALSE? A) Date 1 is the end of the first year. B) Date 0 is the beginning of the first year. 3) Which of the following statements regarding the timeline is FALSE? A) Date 1 is the end of the first year. B) Date 0 is the beginning of the first year. C) The space between date 0 and date 1 represents the time period between two specific dates. D) You will find the timeline most useful in tracking cash flows if you interpret each point on the timeline as a period or interval pf time. 4) At an annual interest rate of 7%, the future value of $5,000 in five years is closest to: A) $3,565 B) $6,750 C) $7,015 D) $7,035 Explain your answer 5) At an annual interest rate of 7%, the present value of $5,000 received in five years is closest to: A) $3,565 B) $6,750 C) $7,015 D) $7,035 Explain your answer 6) Consider the following timeline: Date $500 $500 $500 Cash flow If the current market rate of interest is 7%, then the future value of this timeline as of year 3 is closest to: A) $1720 B) $1500 C) $1404 D) $1717 Explain your