There are two possible twelve month investments, A and B. Their cash flows are described in...

 

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There are two possible twelve month investments, A and B. Their cash flows are described in the table below. Draw a fully labeled cash flow diagram for each showing all amounts individually (see Figure 3.5 as an example). Remember to show the units of time in your diagram. Note: Diagrams are not typically drawn to scale, but rather loosely proportional, i.e. amounts that twice as large should be associated with lines that are roughly about twice as long. Investment A Investment B Payments $2,400 now and a closing fee of $200 $500 every two months, starting two at the end of month 12 months from now Receive $50 at the end of the first month, and from that point on, receive $50 more than the previous Receipts $250 monthly payment at the end of each month month at the end of each month There are two possible twelve month investments, A and B. Their cash flows are described in the table below. Draw a fully labeled cash flow diagram for each showing all amounts individually (see Figure 3.5 as an example). Remember to show the units of time in your diagram. Note: Diagrams are not typically drawn to scale, but rather loosely proportional, i.e. amounts that twice as large should be associated with lines that are roughly about twice as long. Investment A Investment B Payments $2,400 now and a closing fee of $200 $500 every two months, starting two at the end of month 12 months from now Receive $50 at the end of the first month, and from that point on, receive $50 more than the previous Receipts $250 monthly payment at the end of each month month at the end of each month