A) The cash flows are in the form of a deferred annuity, and they total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000.
B) The discount rate decreases.
C) The riskiness of the investment's cash flows increases.
D) The total amount of cash flows remains the same, but more of the cash flows are received in the later years and less are received in the earlier years.
E) The discount rate increases.
Correct Answer
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True/False
Correct Answer
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Multiple Choice
A) 14.21
B) 14.96
C) 15.71
D) 16.49
E) 17.32
Correct Answer
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Multiple Choice
A) $16,806
B) $17,690
C) $18,621
D) $19,601
E) $20,633
Correct Answer
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