You are comparing two investment options that each pay 5


You are comparing two investment options that each pay 5 percent interest, compounded annually. Option A pays three annual payments starting with $2000 the first year followed by two annual payments of $5000 each. Option B pays three annual payments of $4000 each. Why does Option B have a higher present value at time zero than option A?

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Financial Management: You are comparing two investment options that each pay 5
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