Which of the Following Cash Flows Has the Highest Present

question 2

Multiple Choice

Which of the following cash flows has the highest present value?

• A) $1000 received two years in the future when the interest rate is 4%
• B) $1000 received two years in the future when the interest rate is 6%
• C) $1000 received three years in the future when the interest rate is 4%
• D) $1000 received three years in the future when the interest rate is 6%

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Definitions:

Neural Tube

An embryonic structure that develops into the brain and spinal cord.

Anencephaly

Defective development of the brain and absence of the bones of the cranium. Only a rudimentary brainstem and a trace of basal ganglia are present.

Hydrocephaly

A condition characterized by an abnormal accumulation of cerebrospinal fluid within the ventricles of the brain, leading to increased pressure.

Ventricular Enlargement

This term refers to the expansion or increase in size of the ventricles in the brain, which can be indicative of disease or damage.