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When the present value of an ordinary annuity is computed, the number of discount periods will always be:_______. a. greater than the number of rents. b. less than or equal to the number of rents. c. less than the number of rents. d. equal to the number of rents.

Respuesta :

sadddamkashmiri801

Answer:

Option C Less than the number of rents

Explanation:

The reason is that calculating annuity means that we are actually calculating present value of the company in a much simpler way which gives the same answer. This means the answer will be present value and present value is always less than the cashflows arising in future.

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