To solve future value problems with multiple cash flows involves which of the following steps?

To solve future value problems with multiple cash flows involves which of the following steps?



A) First, draw a time line to make sure that each cash flow is placed in the correct time period.
B) Second, calculate the future value of each cash flow for its time period.
C) Third, add up the future values.
D) All of the above are necessary steps.


Answer: D


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