Question 1:
Proficient-level: "List and describe the purpose of each part of a time line with an initial cash inflow and a future cash outflow. Which cash flows should be negative and which positive?" (Cornett, Adair, and Nofsinger, 2016, p. 95). The cash flow timeline is a visual depiction of inflows and outflows relative to the period under consideration. Cash flows are illustrated above the cash flow line with the corresponding periods that apply appearing under the cash flow diagram. Inflows are represented by positive numbers and outflows by negative numbers.
Distinguished-level: State the reason for showing both a negative and positive amount on the time line. Showing a negative or positive amount on the timeline shows where money has been contributed or lost (negative) and where money has been earned (positive). By using the negative and positive values for cash flow, the timeline is aligned with accounting practices of debits and credits
Question 2:
Proficient-level: "How are the present value and future value related?" (Cornett, Adair, & Nofsinger, 2016, p. 95). The measure that relates present values to future values is the interest rate i. A present value can be moved forward in time with interest to arrive at the future value (). A future value can be discounted back to the present by rearranging the equation so that the FV is divided by the interest factor.

Distinguished-level: Explain why a dollar is worth more today than a dollar received a year from now. The idea that a dollar today is worth more than a dollar inthe future, because the dollar received today can earn interest up until the time the future dollar is received.
Question 3:
Proficient-level: "How are present values affected by changes in interest rates?" (Cornett, Adair, & Nofsinger, 2016, p. 95). Interest rates have an inverse relationship to present values.