Question
Which one of the following cash flows will have the highest PV for the same amount of payment(s)? Question 1 options: A single cash flow
Which one of the following cash flows will have the highest PV for the same amount of payment(s)?
Question 1 options:
|
| A single cash flow of $1000 that you will receive in one year from now. |
|
| A perpetuity with $1000 annual payments, starting with next year. |
|
| A growing perpetuity with $1000 payment for the first year and with a growth rate of 2% every year. |
|
| An annuity with five $1000 annual payments, starting with next year. |
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Personal Finance
Authors: E. Thomas Garman, Raymond E. Forgue, Jonathan Fox
14th Edition
0357901495, 9780357901496
