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At an opportunity cost of capital of 10%, which of the following cash flow profiles would you prefer? Year 1 Year 2 Year 3 A
At an opportunity cost of capital of 10%, which of the following cash flow profiles would you prefer?
| Year 1 | Year 2 | Year 3 |
A | $ 500 | $ 300 | $ 100 |
B | 100 | 300 | 500 |
C | 300 | 300 | 300 |
D | Any of the above as they all add up to $900 |
a.
Cash flow profile A
b.
Cash flow profile B
c.
I am indifferent because the add to $900
d.
Cash flow profile C
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