Question
1) I promise to pay you either $100 today or some different amount of money one year from now. How much would I have to
1) I promise to pay you either $100 today or some different amount of money one year from now. How much would I have to promise to pay you in one year for you to choose to forego the $100 today and wait one year for the cash? Explain how you came up with the value you would need to receive in order to choose to wait.
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
10th Edition
0201785676, 9780201785678
