At an Interest Rate of 10 Percent, Which of the Following

question 33

Multiple Choice

At an interest rate of 10 percent, which of the following sequences of cash flows should you prefer? $\begin{array}{l}\begin{array} { c c c c } & \text { Year 1 } & \text { Year } 2 & \text { Year } 3 \\\text { A) } & 500 & 300 & 100 \\\text { B) } & 100 & 300 & 500 \\\text { C) } & 300 & 300 & 300\end{array}\\\text { D) Any of the above as they all add up to } \$ 900\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Coniferous Forest

A biome characterized by evergreen trees with needles and cones, such as pines, spruces, and firs.

Coral Reef System

A diverse underwater ecosystem characterized by reef-building corals. These systems are found in warm, shallow ocean waters and support a wide range of marine life.

Freshwater

Water that has a low salt concentration, commonly found in rivers, lakes, streams, and ponds.

Oxygen

A chemical element with symbol O, critical for the survival of most terrestrial life forms, acting as the final electron acceptor in cellular respiration.