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Base on the principles of TVM, which cash-flow is worth more in present value terms. Assume the interest rate is positive. Time Period 0 1
Base on the principles of TVM, which cash-flow is worth more in present value terms. Assume the interest rate is positive.
Time Period | 0 | 1 | 2 | 3 | 4 |
Cash Flows Asset A | 100 | 200 | 50 | ||
Cash-Flows Asset B | 200 | 100 | 50 |
Cash-Flow B is worth more in PV terms |
The two cash-flows are both worth $350 in PV terms |
There is not enough information to tell |
Cash-Flow A is worth more in PV terms |
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