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A Firm Makes Investments of $2,000 This Year, $4,000 Next

Question 1

Multiple Choice

A firm makes investments of $2,000 this year, $4,000 next year, and $2,500 the following year. This form of cash flow pattern is a(n) _____. 


A) ordinary annuity
B) annuity due
C) uneven cash flow stream
D) lump-sum payment
E) compounded cash flow

Correct Answer:

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