Assuming the nominal interest rate is equal to 0, rank the following three sequences of payments according to their present value:
Sequence "A": $190, $200, $210
Sequence "B": $200, $200, $200
Sequence "C": $210, $200, $190
Group of answer choices
A. A>B>C.
B. A>C>B.
C. C>B>A.
D. B>A>C.
E. None of the above.
Answer: C. C > B > A
Since the nominal interest rates are 0 , the cashflows will be ranked in their respective order only. Hence option C will be correct.
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