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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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