managerial economics
posted by sheila on .
assuming that the firm's goal is to maximize present value of the profits in the subsequent 5 years, which of the following flows of profit would achieve that goal? Justify your answer. Note that the flows are represented by 5tuples, i.e. five number each of which represents profit in the respective year. Assume that the numbers represent profits in $. Use r=5% for discounting the value of future profits.
a: (1000, 1000, 1000, 1000, 1000)
b: (800, 900, 1000, 1100, 1200)
c: (1200, 1100, 1000, 900, 800)

I believe the answer is C.