Suppose three investments have equal lives and multiple cash flows. A high discount rate tends to favor:

Question:

Suppose three investments have equal lives and multiple cash flows. A high tends to favor:
a. The investment with large cash flows early.
b. The investment with large cash flows late.
c. The investment with even cash flows.
d. None of the investments since they have equal lives.

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...