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The timeline shown below best describes the cash flow of which of the following people? why? Date (years) 0 1 2 3 4 Cash Flows -$3500 $1000 $1000 $1000 $1000   A, who loans a friend $3500, which friend then pays back the loan in four annual installments of $1000 B, who borrows $3500, and then pays back the loan in four annual payments of $1000 C, who borrows $3500, and then receives an annual payment of $1000 D, who puts down $3500 to buy a car, and then makes annual payments of $1000

The timeline shown below best describes the cash flow of which of the following people? why? Date (years) 0 1 2 3 4 Cash Flows -$3500 $1000 $1000 $1000 $1000   A, who loans a friend $3500, which friend then pays back the loan in four annual installments of $1000 B, who borrows $3500, and then pays back the loan in four annual payments of $1000 C, who borrows $3500, and then receives an annual payment of $1000 D, who puts down $3500 to buy a car, and then makes annual payments of $1000

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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The timeline shown below best describes the cash flow of which of the following people? why?

Date
(years)

0

1

2

3

4

Cash Flows

-$3500

$1000

$1000

$1000

$1000

 

  1. A, who loans a friend $3500, which friend then pays back the loan in four annual installments of $1000
  2. B, who borrows $3500, and then pays back the loan in four annual payments of $1000
  3. C, who borrows $3500, and then receives an annual payment of $1000
  4. D, who puts down $3500 to buy a car, and then makes annual payments of $1000
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