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Suppose that the discount rate used to calculate the present value of a debt obligation's cash flow is x % . Suppose also that the

Suppose that the discount rate used to calculate the present value of a debt obligation's cash flow is x%. Suppose also that the only cash flows for this debt obligation are $200,000 four years from now and $200,000 five years from now. For which of these cash flows will the present value be greater?
A) The present values would only be different if the debt obligation were subject to a change.
B) Cash flows that come earlier will have a lower value. As long as x% is positive and the amount is the same, the present value will be lower for the $200,000 four years from now compared to five years from now.
C) Cash flows that come earlier will have a greater value. As long as x% is positive and the amount is the same, the present value will be greater for the $200,000 four years from now compared to five years from now.
D) Cash flows are the same and this is why the present value does not change.
A
C
B
D
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