If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving       $250 in one year or A) $235.85 today. B) $250.00 today. C) $265.00 today. D) None of the above

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 12MC: (1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest...
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If the risk-free rate of interest (rf) is 6%, then you should be indifferent between receiving

      $250 in one year or

  1. A) $235.85 today.
  2. B) $250.00 today.
  3. C) $265.00 today.
  4. D) None of the above
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