Which Choice Has a Greater Present Value If We Assume

question 60

Multiple Choice

Which choice has a greater present value if we assume a required rate of return of 10%? 1: A lump sum cash flow today of $248.69,2: $100 cash flows occurring one,two,and three years from today,or 3: a single cash flow of $331 three years from today.

• A)Choice 1
• B)Choice 2
• C)Choice 3
• D)The choices all have equal present values at a discount rate of 10%.

---

Definitions:

Depression

An emotional health issue defined by an ongoing depressed state or absence of pleasure in tasks, which considerably hinders daily activities.

Psychological Disorders

Mental disorders characterized by patterns of thought, feeling, and behavior that are significantly distressing, deviant from cultural norms, and lead to impairment in functioning.

Substance Abuse

The adverse or perilous engagement with psychoactive substances, encompassing both alcohol and banned drugs.

Treatment Costs

The financial expenditures associated with medical treatments, including the price of medications, therapy sessions, and other healthcare services.