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Problem:

Assume that you are nearing graduation and that you have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses TVM analysis. See how you would do by answering the following questions:

Required:

Question: Draw cash flow timelines for (1) a $100 lump sum cash flow at the end of Year 2, (2) an ordinary annuity of $100 per year for three years, (3) an uneven cash flow stream of, $50, $100, $75, and $50 at the end of Years 0 through 3.

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Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91172842

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