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bigexternal bigexternal
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7 years ago
You are faced with two different investment options. The first investment provides cash flows of $1,500 per year for 10 years. The second investment provides cash flows of $3,000 for 5 years. For both investments, cash flows occur at the end of each year. Which of these has the higher present value with a discount rate of 5%?
A) The 5-year investment
B) They have the same PV.
C) The 10-year investment
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 1st
Authors:
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We're using: Corporate Finance Online (Eakins, McNally)
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BlimpBlimp
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Posts: 499
7 years ago
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Pol. Sci. Major
Minoring in Business
Columbia University Sophomore

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bigexternal Author
wrote...
7 years ago
I'm surprised how many intellects exist in this community, thank you
We're using: Corporate Finance Online (Eakins, McNally)
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