Which has a greater present value

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Which has a greater present value, a future value of $300,000 received in year 6, or an end−of−the −year annuity? (first cash flow exactly one year from today) of $75,000 that lasts for four years if the relevant interest rate is 0%? 

A. You are indifferent to these two sets of cash flows on a present value basis.

B. The future value of $300,000 is preferred.

C. The annuity has a greater present value.

D. You can't properly answer this question because the interest rate is 0%.

Reference no: EM131502934

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