Question: Which cash flow has the greatest present value if your discount rate is 13%? A. Five Annual payments of $2800 - the first payment occurs
Which cash flow has the greatest present value if your discount rate is 13%?
A. Five Annual payments of $2800 - the first payment occurs one year from today
B. A perpetual stream of annual payments starting at $500 in one year and increasing at 5% per year thereafter.
C. A lump sum payment of $25,000 at the end of 10 years.
D. A lump sum payment of $10,000 today.
E. A perpetual stream of annual payments of $1,000 starting in one year.
Can you please show work of how you calculated the value for each line! Thanks!
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