Which of the following investments has a higher present value,assuming the same (strictly positive)interest rate applies to both investments?
A)Investment X has a higher present value.
B)Investment Y has a higher present value.
C)Investment X and Investment Y have the same present value,since the total of the cash flows is the same for both.
D)Investment Y has half the present value of Investment X.
E)No comparison can be made - we need to know the interest rate to calculate the present value.

Question

Which of the following investments has a higher present value,assuming the same (strictly positive)interest rate applies to both investments? 
A)Investment X has a higher present value. 
B)Investment Y has a higher present value. 
C)Investment X and Investment Y have the same present value,since the total of the cash flows is the same for both. 
D)Investment Y has half the present value of Investment X. 
E)No comparison can be made - we need to know the interest rate to calculate the present value.

Quizplus · Accepted Answer

The Answer of Which of the following investments has a higher present value,assuming the same (strictly positive)interest rate applies to both investments? 
A)Investment X has a higher present value. 
B)Investment Y has a higher present value. 
C)Investment X and Investment Y have the same present value,since the total of the cash flows is the same for both. 
D)Investment Y has half the present value of Investment X. 
E)No comparison can be made - we need to know the interest rate to calculate the present value.

Which of the Following Investments Has a Higher Present Value,assuming