You are considering two investments a and b both

Reference no: EM13566072

You are considering two investments: A and B. Both investments provide a cash flow of $100 per year for n years. However, investment A receives the cash flow at the beginning of each year, while investment B receives the cash at the end of each year. If the present value of cash flows from investment A is P, and the discount rate is c, what is the present value of the cash flows from investment B? Answer P/(1 + c) P(1 + c) P/(1 + c)n P(1 + c)n.

Reference no: EM13566072

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