Which has a greater present value, a future value of $300,000 received in year 6, or an end−of−the −year annuity? (first cash flow exactly one year from today) of $75,000 that lasts for four years if the relevant interest rate is 0%?
A. You are indifferent to these two sets of cash flows on a present value basis.
B. The future value of $300,000 is preferred.
C. The annuity has a greater present value.
D. You can't properly answer this question because the interest rate is 0%.