Whose cash flow is best described by the timeline shown below? Date (years) 0 1 2 3 4 Cash Flows -$3,500 $1,000 $1,000 $1,000 $1,000 Question 2Answer a. Karen, who loans a friend $3,500, which friend then pays back the loan in four annual installments of $1,000 b. Leo, who borrows $3,500, and then pays back the loan in four annual payments of $1,000 c. Joe, who puts down $3,500 to buy a car, and then makes annual payments of $1,000 d. Harry, who borrows $3,500, and then receives an annual payment of $1,000
Whose cash flow is best described by the timeline shown below? Date (years) 0 1 2 3 4 Cash Flows -$3,500 $1,000 $1,000 $1,000 $1,000 Question 2Answer a. Karen, who loans a friend $3,500, which friend then pays back the loan in four annual installments of $1,000 b. Leo, who borrows $3,500, and then pays back the loan in four annual payments of $1,000 c. Joe, who puts down $3,500 to buy a car, and then makes annual payments of $1,000 d. Harry, who borrows $3,500, and then receives an annual payment of $1,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
ChapterM: Time Value Of Money Module
Section: Chapter Questions
Problem 3MC: Refer to the present value table information on the previous page. If Kathleen put 3,000 in a...
Related questions
Question
Whose cash flow is best described by the timeline shown below?
|
Date (years) |
0 |
1 |
2 |
3 |
4 |
|
Cash Flows |
-$3,500 |
$1,000 |
$1,000 |
$1,000 |
$1,000 |
Question 2Answer
a.
Karen, who loans a friend $3,500, which friend then pays back the loan in four annual installments of $1,000
b.
Leo, who borrows $3,500, and then pays back the loan in four annual payments of $1,000
c.
Joe, who puts down $3,500 to buy a car, and then makes annual payments of $1,000
d.
Harry, who borrows $3,500, and then receives an annual payment of $1,000
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