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
A
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