You are presented with two cash flow options: Option Near, a $5,000 annuity for three years, with the first cash flow one year from today, or Option Far, a $5,000 annuity for six years with the first cash flow ten years from today. Assuming an interest rate of 7.0%, which set of cash flows has a greater present value? Option Near and Option Far have the same PV of $12, 963.41 Option Far has a greater PV of $30,000 vs Option Near PV of $15,000 Option Far has a greater PV of $13, 121.58 vs Option Near PV of $12, 963.41 Option Near has a greater PV of $13, 121.58 vs. Option Far PV of $12, 963.41 A/An is a series of equal end-of-the-period cash flows. ordinary annuity annuity due perpetuity due None of these What type of loan makes interest payments throughout the life of the loan and then pays the principal and final interest payment at the maturity date? Amortized loan Interest-only loan Discount loan Compound loan Which of the following is NOT a reason for a low-dividend-payout policy? The avoidance or postponement of taxes on distributions for shareholders Higher potential future returns for shareholders Low-dividend-payout clientele are willing to pay a higher price per share than high-dividend payout clientele Less need for additional costly outside funding