question archive Each of the following investments has a present value that can be used to determine which is most valuable (i
Each of the following investments has a present value that can be used to determine which is most valuable (i
Subject:FinancePrice: Bought3
Each of the following investments has a present value that can be used to determine which is most valuable (i.e., has the largest PV), which is least valuable (has the smallest PV), and which has a value in the middle of the others (has a PV that ranks 3rd if the PVs are listed from smallest to largest). Assuming a positive interest rate and assuming that all options have the same risk, which of the following has a value in the middle of the others ? 1) Receiving 10 payments of $2,000 per year with the first payment to be received exactly one year from today. 2) Receiving 10 payments of $2,000 per year with the first payment to be received today 3) Receiving $20,000 today. 4) Receiving $10,000 today and $10,000 next year. 5) Receiving $4,000 per year for five years beginning next year
