Which of the Following Cash Flows Has the Highest Present

question 138

Multiple Choice

Which of the following cash flows has the highest present value (PV) at a 15 percent discount rate?

• A)$1,150 received one year from today
• B)$2,000 received 5 years from today
• C)$200 received every year (at the end of the year)for 10 years
• D)$300 received every year (at the end of the year)for 5 years

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Definitions:

Decision

The act or process of making a choice or judgment after considering different courses of action.

Conflict

A situation where there are incompatible interests, beliefs, or objectives between two or more parties, leading to a disagreement or dispute.

Group Decision

The outcome or resolution arrived at by a group of individuals through a deliberative process.

Socioemotional

Relating to the interplay between social interactions and emotional responses.