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D Question 2 4.5 pts You are comparing two investment options that are otherwise comparable, except for the timing of their payments. Both options will

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D Question 2 4.5 pts You are comparing two investment options that are otherwise comparable, except for the timing of their payments. Both options will provide you with $12,000 of total income Option A pays three annual payments, starting with $2,000 the first year followed by two annual payments of $5,000 cach Option 3 pays three annual payments of $4.000 each. All payments are at the end of the year. Your time value of money is 5 percent compounded annually Which one of the following statements is correct slven these two options? Option Ais an annuity Option has a higher prevent value at time zero than does option A Both options are of equal value given that they both provide $12.000 of income. Option is a perpetuity Option A has the higher future value at the end of year three Previous Next

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