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Given a Discount Rate of 0%,which of the Following Has

Question 21

Multiple Choice

Given a discount rate of 0%,which of the following has the greatest present value? ONE,a series of 10 equal annual end-of-the cash flows of $100 each,TWO,just like ONE except the first 5 cash flows are only $50 but the last 5 cash flows are $150,or THREE,just like ONE except the 10 $100 cash flows are at the beginning of the period.


A) ONE
B) TWO
C) THREE
D) The choices all have equal present values.

Correct Answer:

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