=+2. You are offered the choice of two payment streams: (a) $150 paid one year from now

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=+2. You are offered the choice of two payment streams:

(a) $150 paid one year from now and $150 paid two years from now;

(b) $130 paid one year from now and

$160 paid two years from now. Which payment stream would you prefer if the interest rate is 5 percent? If it is 15 percent?

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Microeconomics

ISBN: 9780134184241

9th Edition

Authors: Robert Pindyck, Daniel Rubinfeld

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