Which of the following should have the greatest value if the discount rate applying to the cash flows is a positive value?
A) the present value of a $5 payment of to be received one year from today.
B) the future value of a $5 payment received today but invested for one year.
C) the present value of a stream of $5 payments to be received at the end of the next two years.
D) the future value of a stream of $5 payments to be received at the end of the next two years.
Correct Answer:
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