QUESTION 3 You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flown. Which of the following would increase the calculated value of the investment? O a The cash flows are in the form of a deferred enouity, and they total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000 b. The discount rate decreases c. The riskinens of the investment's cash flown incronse The total amount of canh town remains the same, but more of the cash flows are received in the later years and less are received in the earlier od years The discount rate increases Oe. QUESTION 4 Which of the following statements is CORRECT? O a. The cash flows for an ordinary or deferred) annuity all occur at the beginning of the periods. b. If a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity The cash flows for an annuity due must all occur at the beginning of the periods. d. The cash flows for an annuity may vary from period to period, but they must occur at regular intervals, such as once a year or once a month. If some cash flows occur at the beginning of the penods while others occur at the ends, then we have what the textbook defines a szable auty