Present value of five minus-year ordinary annuity

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Reference no: EM131182570

Which is? greater, the present value of a fiveminus−year ordinary annuity of? $300 discounted at? 10%, or the present value of a fiveminus−year ordinary annuity of? $300 discounted at? 0% that has its first cash flow six years from? today

A. The two annuities are of equal value.

B. The second annuity because the cash flows are discounted at a? 0% interest rate.

C. The first annuity because the cash flows occur sooner.

D. The answer to this question cannot be determined.

Reference no: EM131182570

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