Which of following investments have lowest present value

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Which of the following investments would have the 'lowest' present value? Assume that the effective annual rate for all investments is the same and is greater than zero.

Question options:

a) Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).

b) Investment E pays $250 at the beginning of every year for the next 10 years (a total of 10 payments).

c) Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments).

d) Investment D pays $2,500 at the end of 10 years (just one payment).

e) Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments).

 

Reference no: EM13294468

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