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Which of the following is NOT correct? Multiple Choice A) Cash flows occurring in different periods should not be compared unless the flows have been
Which of the following is NOT correct?
Multiple Choice
A) Cash flows occurring in different periods should not be compared unless the flows have been discounted to a common date.
B) The argument that 700 dollars today worth more than 700 dollars one year from now is correct only when interest rate is positive.
C) Other things being equal, the more frequent the compounding period, the higher the EAR.
D) Other things being equal, the more frequent the compounding period, the higher the APR.
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