Which of the following statements is MOST true?

• A. The higher the required rate of return on future cash flows, the higher the price that someone is willing to pay for those cash flows.

• B. The formula for present value of an annuity due can only be used when the first cash flow is occurring at time 0.

• C. The general formula for future value of an ordinary annuity is equal to the general formula for present value of an ordinary annuity multiplied by the future value interest factor (FVIF).

• D. There is an inverse relationship between risk and rate of return.