Suppose That You Want to Evaluate the Following Non-Standard Cash

Multiple Choice

Suppose that you want to evaluate the following non-standard cash flow: $1 000 paid at the end of every third year in a 12-year period with annual interest rate of 10%. What is the best method?

A) Convert the non-standard cash flow into standard annuity by changing the interest rate.
B) Convert the non-standard cash flow into standard annuity by changing the compounding period.
C) Convert the non-standard cash flow into arithmetic gradient series.
D) Treat each payment as a separate payment.
E) Convert the non-standard cash flow into a geometric gradient series.