The payment of utility bills is an example of _____.
a. immediate annuity
b. ordinary annuity
c. annuity due
d. lump-sum payments
e. uneven cash flows

Respuesta :

Uneven cash flows is an example of the payment of utility bills. In essence, uneven cash flows are series of unequal payments made over a specific time period. For example, over a five-year period, one could receive the following annual payments: $500 US Dollars (USD), $300 USD, and $750 USD.

If on the other hand, the regular payment were fixed at a specific amount, the cash flows would be equal. For example, one could receive a $500 USD annual payment, also known as an annuity. Furthermore, irregular cash flows can be associated with  variety of financial situations, including capital budgeting.

Therefore, the correct answer will be option (e)

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