Question: explain the difference between these two income sources in terms of their actual and discounted cash-flows. Describe the situations when an investor would favour one

 explain the difference between these two income sources in terms of
explain the difference between these two income sources in terms of their actual and discounted cash-flows. Describe the situations when an investor would favour one product over the other.

two sources of income with equal present valuec C at time 0 provide annual payents in arrears during 10 years. The first product, i.e. Product 1, pays 50,000 - 2,000k, where k is measured in years, and the second product pays a constant annual amount of b. The present vaues are calculated using a force of interest of delta(t) = 0.05 -0.002t, where t is measured in years. =

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