Business, 07.10.2019 19:10, meganwintergirl

You are given two choices of investments, investment a and investment b. both investments have the same future cash flows. investment a has a discount rate of 4%, and investment b has a discount rate of 5%. which of the following is true?
a. the present value of cash flows in investment a is lower than the present value of cash flows in investment b.
b. the present value of cash flows in investment a is higher than the present value of cash flows in investment b.
c. the present value of cash flows in investment a is equal to the present value of cash flows in investment b.
d. no comparison can be madelong dash—we need to know the cash flows to calculate the present value.

Answers: 2

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You are given two choices of investments, investment a and investment b. both investments have the s...