QUESTION 4 Cash flows occurring in different periods should not be compared unless: interest rates are expected to be stable. the flows occur no more than one year from each other. high rates of interest can be earned on the flows. the flows have been discounted to a common date. QUESTION 5 Store ABC is offering free credit on purchases of over $1,000. You observe that a television can be purchased for nothing down and $4,000 due in one year. Store XYZ offers an identical television for $3,650 but does not offer free credit. Which statement below best describes the real cost of "free" credit? Hint: Find the implied interest rate (like CAGR) assuming PV = price at Store XYZ and FV = price at Store ABC. The "free" credit costs about 8.75% The "free" credit costs about 9.13%. The "free" credit costs about 9.59%. The "free" credit effectively costs zero percent