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You are given two choices of investments, Investment A and Investment B. Both investments have the same future cash flows. Investment A has a discount
You are given two choices of investments, Investment A and Investment B. Both investments have the same future cash flows. Investment A has a discount rate of 7%, and Investment B has a discount rate of 6%. Which of the following is true? Select one: a. No comparison can be made - we need to know the cash flows to calculate the present value. b. The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B. c. The present value of cash flows in Investment A is equal to the present value of cash flows in Investment B. d. The present value of cash flows in Investment A is lower than the present value of cash flows in Investment B. e. The future value of cash flows in Investment A is lower than the future value of cash flows in Investment B
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