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Assume that the interest rate is greater than zero. Which of the following cash-inflow streams should you prefer?

    Year1      Year2     Year3      Year4     

4) $400       $300      $200        $100

 

2) $100       $200      $300        $400

 

3) $250       $250      $250        $250

 

4) Any of the above, since they each sum to $1,000.

 

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/03/22
Dhawal Thakkar
by Dhawal Thakkar , Senior Engineer Projects , TDK Corporation

It would be preferred

1) $400       $300      $200        $100

Vinod Jetley
by Vinod Jetley , Assistant General Manager , State Bank of India

1) $400       $300      $200        $100

 

is the correct answer.

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Agreed with expert<<<<<<<<<<<<<<<<<

    Year1      Year2     Year3      Year4     

4) $400       $300      $200        $100

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

Preferable:

 

$400       $300      $200        $100

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>>>> The answer will be  $400       $300      $200        $100

 

Faustine Mukankiko
by Faustine Mukankiko , CEO , Andrade Enterprises limited

I would prefer 1. $400 $300 $200. $100

Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

4) $400       $300      $200        $100

Since we have learned in economy that's a Dollar today doesn't equal a Dollar tomorrow.

Wolf Klaas Kinsbergen
by Wolf Klaas Kinsbergen , Managing Director, Designer , ingenieursbureau KB International NV

Number1 because I benefit from the interest rates myself

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