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If an investor had a choice of receiving $1,000 today, or $1,000 in five years, which would the ...

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If an investor had a choice of receiving $1,000 today, or $1,000 in five years, which would the ...

If an investor had a choice of receiving $1,000 today, or $1,000 in five years, which would the average investor prefer?
A) $1,000 in five years because they are not good at saving money.
B) $1,000 today because it will be worth more than $1,000 received in five years.
C) $1,000 in five years because it will be worth more than $1,000 received today.
D) Investors would be indifferent to when they would receive the $1,000.
E) None of the above.

Textbook

Financial Management: Principles and Applications

Edition: 13^th

Authors: Titman, Keown, Martin

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