Cash flow: Inflow and outflow movement of cash is known as Cash flows. Cash flows are the expected cash to be generated by an asset, investment or business. There are two types of cash flows, namely cash inflow and cash outflow . The payments refer to cash outflows and receipts refer to cash inflows. Present Value: Present value is that value of money which measures the worth of a future amount in today’s value adjusted for interest and inflation. It is used in finance for the valuation of future value , stock and bond pricing . To Identify: The given cash flows will be sufficient to pay off the credit card balance.

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Chapter 4, Problem 4P

Summary Introduction

Cash flow:

Inflow and outflow movement of cash is known as Cash flows. Cash flows are the expected cash to be generated by an asset, investment or business. There are two types of cash flows, namely cash inflow and cash outflow. The payments refer to cash outflows and receipts refer to cash inflows.

Present Value:

Present value is that value of money which measures the worth of a future amount in today’s value adjusted for interest and inflation. It is used in finance for the valuation of future value, stock and bond pricing.

To Identify:

The given cash flows will be sufficient to pay off the credit card balance.

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