Examlex
You are given two choices of investments,Investment A and Investment B.Both investments have the same future cash flows.Investment A has a discount rate of 4%,and Investment B has a discount rate of 5%.Which of the following is true?
Income
The money received, especially on a regular basis, for work or through investments.
Opportunity Cost
The price paid for not choosing the next most favorable option when deciding or picking between different possibilities.
Term Deposit
A bank deposit with a fixed term and typically a fixed rate of interest, where withdrawal can only occur after the term ends without penalty.
Holding Cash
The practice of keeping money in the form of physical currency as a store of value or for transactions.
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