Which choice has a greater present value if we assume a required rate of return of 10%?
1: A lump sum cash flow today of $248.69, 2: $100 cash flows occurring one, two, and three years from today, or 3: a single cash flow of $331 three years from today.
A) Choice 1
B) Choice 2
C) Choice 3
D) The choices all have equal present values at a discount rate of 10%.
ANSWER
D
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