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borteleto borteleto
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6 years ago
You won the lottery and can receive either (1) $60,000 today, or (2) $10,000 one year from today plus $25,000 two years from today plus $35,000 three years from today. You plan to use the money to pay for your child's college education in 15 years. You should
A) take the $60,000 today because of the time value of money regardless of current interest rates.
B) take option two because you get $70,000 rather than $60,000 regardless of current interest rates.
C) take the $60,000 today only if the current interest rate is at least 16.67%.
D) take the $60,000 today if you can earn 6.81% per year or more on your investments.
Textbook 
Foundations of Finance

Foundations of Finance


Edition: 9th
Authors:
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Marc18Marc18
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borteleto Author
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#2
6 years ago
Happy Dummy I'm impressed
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