(TRUE or FALSE?) The PV of the ordinary annuity is larger than the PV of the annuity due because the cash flows of the annuity due are shifted forward one year and thus are discounted more.

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 11QTD
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(TRUE or FALSE?) The PV of the ordinary annuity is larger than the PV of the
annuity due because the cash flows of the annuity due are shifted forward one
year and thus are discounted more.
Transcribed Image Text:(TRUE or FALSE?) The PV of the ordinary annuity is larger than the PV of the annuity due because the cash flows of the annuity due are shifted forward one year and thus are discounted more.
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