5. The present value of a future amount (assuming positive interest rates and a time difference between the present and the future): a. will always be less than the future amount. b. can be calculated precisely if the discount rate and number of periods is known. c. is greater than the future value. d. both a. and b. above are true. e. None of the statements above are correct. 6. In 2 years you are to receive $10,000. If the interest rate were to suddenly decrease, the present value of that future amount to you would I a. fall b. rise c. remain unchanged d. The correct answer cannot be determined without more information. 7. Assume that the interest rate is greater than zero. Which of the following cash-inflow streams totaling $1,500 would you prefer? The cash flows are listed in order for Year 1, Year 2, and Year 3 respectively. a. $700 in Year 1; 5500 in Year 2; S300 in Year 3 b. $300 in Year 1; $500 in Year 2; $700 in Year 3 c. $500 in Year 1; $500 in Year 2, S500 in Year 3 d. Any of the above, since they each sum to $1,500. 8. Assume that the interest rate is equal to zero (.e., 0%). Which of the following cash-inflow streams totaling $1,500 would you prefer? The cash flows are listed in order for Year 1, Year 2, and Year 3 respectively. $700 in Year 1; $500 in Year 2; $300 in Year 3 b. $300 in Year 1; $500 in Year 2; $700 in Year 3 c. $500 in Year 1; $500 in Year 2; $500 in Year 3 d. Any of the above, since they each sum to $1,500. a