Question: Can someone explain the rationale behind why the answer is C? Please explain. Thank you! Study the time line and accompanying 5-period cash-flow pattern below.

Can someone explain the rationale behind why the answer is C? Please explain. Thank you!

Can someone explain the rationale behind why the answer is C? Please

Study the time line and accompanying 5-period cash-flow pattern below. -1 0 1 2 3 3 4 4 5 Time line |--------- ----------------------- ------ $10 $10 $ 10 $10 Cash flows 1 1 A B $10 The present value of the cashflows at Point A is the present value of a 5-period whereas the future value at Point B is the future value of a 5-period A. ordinary annuity starting at -1; ordinary annuity starting at -1. B. annuity due starting 0; annuity due starting at 0. C. annuity due starting at 0; ordinary annuity starting at - 1. D. ordinary annuity starting at -1; annuity due starting at 0. E. None of the above

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