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Assuming interest rates are greater than zero, which of the following cash-flow streams would you prefer? Year 1: $4,000, Year 2: $3,500, Year 3: $3,000,

Assuming interest rates are greater than zero, which of the following cash-flow streams would you prefer?

Year 1: $4,000, Year 2: $3,500, Year 3: $3,000, Year 4: $2,000

Year 1: $2,000, Year 2: $3,000, Year 3: $3,500, Year 4: $4,000

Year 1: $3,000, Year 2: $3,500, Year 3: $4,000, Year 4: $2,000

Youre indifferent as they all add up to $12,500

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