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) 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) 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) 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