You Are Faced with Two Different Investment Options

question 68

Multiple Choice

You are faced with two different investment options.The first investment provides cash flows of $1,500 per year for 10 years.The second investment provides cash flows of $3,000 for 5 years.For both investments,cash flows occur at the end of each year.Which of these has the higher present value with a discount rate of 5%?

• A) The 5-year investment
• B) They have the same PV.
• C) The 10-year investment

Analyze the role of stress and trauma in the development of mental disorders.

Understand and articulate the diagnostic classification systems used in psychology.

Understand the concepts of replication in research and differentiate between direct and conceptual replication.

Comprehend and identify the components of an experimental design, including independent and dependent variables, and the significance of interactions.

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Definitions:

Maturity

The time at which a financial obligation is due to be paid or a financial instrument, such as a bond, reaches its final installment.

Negotiable Instruments

Negotiable instruments are financial documents that promise payment to the holder and are freely transferable, such as checks, promissory notes, and bills of exchange.

Commercial Paper

An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories, and meeting short-term liabilities.

Paper Documents

Physical documents that contain written or printed information, as opposed to digital or electronic formats.