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With a Discount Rate of

Question 37

Multiple Choice

With a discount rate of .25% per month, which investment would have the highest present value today - Investment A: Beginning today, has a cash flow of $1,500 per month for 60 months or Investment B: Beginning one month from today, has a cash flow of $1,540 per month for 59 months?


A) Investment A
B) Investment B
C) Investment A and B have the same present value

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