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The most basic type of financial transaction involves a simple, one-time amount of cash called a:
ADebenture
BLump sum
CPerpetuity
DAnnuity
Answer & Solution
Correct answer: B. Lump sum
1. Time value analysis starts with the simplest possible cash flow.
2. The most basic type of financial transaction involves a one-time amount of cash.
3. That amount can be either a receipt or a payment.
4. It is called a lump sum payment or receipt.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 7 'Time Value of Money I: Single Payment Value'_
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