Question: Which cash flow has the greatest present value if your discount rate is 11% A. A perpetual stream of annual payments starting at$500 in one

Which cash flow has the greatest present value if your discount rate is 11%

A. A perpetual stream of annual payments starting at$500 in one year and increasing at 5% per year thereafter.

B. A lump sum payment of $10,000 today.

C. Five annual payments of $2,800 - the first payment occurs one year from today.

D. A lump sum payment of $25,000 at the end of 10 years.

E. A perpetual stream of annual payments of $1,000 starting in one year.

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