Which of the following will decrease the present value of the mixed cash flows for...
90.2K
Verified Solution
Link Copied!
Question
Finance
Which of the following will decrease the present value of the mixed cash flows for years 1 through 5 of $1,000; $4,000; $9,000; $5,000; and $2,000 respectively given a 10% discount rate? (Choose all that apply - this is an all or nothing problem; if you choose an option that is wrong or do not choose an option that is correct, your entire answer will be marked wrong).
a. Decrease the discount rate by 2%.
b. Switch cash flows for years 1 and 5 so that year 1 is $2,000 and year 5 is $1,000.
c. Switch cash flows for years 3 and 4 so that year 3 is $5,000 and year 4 is $9,000.
d. Switch cash flows for years 2 and 5 so that year 2 is $2,000 and year 5 is $4,000.
e. Switch cash flows for years 3 and 1 so that year 1 is $9,000 and year 3 is $1,000.
please explain, thanks!
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
