An interest or growth rate for a stream of cash flows can befound by first doing

Question

An interest or growth rate for a stream of cash flows can befound by first doing which of the following?

a.   Dividing the earliest value by the mostrecent value and using the table of the present value interestfactors for one dollar

b.   Adding the earliest value by the mostrecent value and using the table of the present value interestfactors for one dollar

c.   Multiplying the earliest value by the mostrecent value and using the table of the present value interestfactors for one dollar

d.   Subtracting the earliest value by the mostrecent value and using the table of the present value interestfactors for one dollar

e.   Summed up the earliest value by the mostrecent value and using the table of the present value interestfactors for one dollar

Explanation / Answer

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