Question: Question 3 (2 points) Suppose you are trying to find the present value of two different cash flows. One is R100 two periods from now,
Question 3 (2 points) Suppose you are trying to find the present value of two different cash flows. One is R100 two periods from now, the other a R100 flow three periods from now. Which of the following is/are true about the discount factors used to value the cash flows? Whether one factor is larger than the other will depend on the interest rate. The factor for the flow three periods away is always more than the factor for the flow that is received two periods from now. Since the payments are for the same amount, the factors will yield present values that are the samo. None of the above statements are true. The factor for the flow three periods away is always less than the factor for the flow that is received two periods from now
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