Calculating the present value of multiple cash flows

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Problem 1: Which of the following is true for calculating the present value of multiple cash flows?

Option 1: All of the cash flows must be discounted to the same point in time.

Option 2: The PV of multiple cash flows is the sum of the FV of each individual cash flow divided by the interest rate.

Option 3: It is more complex to find the PV of annuities than the PV of irregular cash flows.

Option 4: You can only find the PV of multiple cash flows if they originate at the same time.

Reference no: EM132758269

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