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Assume that the interest rate is greater than zero. Which of the following cash-inflow streams should you prefer? Year1Year2Year3$400Year4$300$200$100 (C) Year1Year2Year3Year4$250$250$250 D Any of the

Assume that the interest rate is greater than zero. Which of the following cash-inflow streams should you prefer? Year1Year2Year3$400Year4$300$200$100 (C) Year1Year2Year3Year4$250$250$250 D Any of the above, since they each sum to $1,000. In 3 years you are to receive $5,000. If the interest rate were to suddenly increase, the present value of that future amount to you would fall. B) rise. (C) remain unchanged. D cannot be determined without more information

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