Rank the economic values of the following cash flow streams from highest to lowest: (i) a single payment of $8000 five years from now; (ii) 40 annual payments of $300 with the first payment today; (iii) 10 annual payments of $900 with the first payment three years from now. Assume money can earn 8% compounded annually.
A) iii; ii; i
B) ii; iii; i
C) iii; i; ii
D) ii; i; iii
E) i; iii; ii
Correct Answer:
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