Assume you have to choose between two options:

1. Receive $100 today

2. Receive $200 in one year.

Under what circumstances would it make sense to accept option 1? (Hint: you should consider the level of risk, the rate of time preference, the opportunity cost of money, etc.)

GIVE EXPLANTION FOR THE CALCULATION TO MAKE THE ANSWER LENGTHY .

KINDLY PLEASE REPLY IN ATLEAST 200- 250 WORDS NO LESS THAN THAT ORELSE YOUR ANSWER WILL BE USELESS FOR ME

DONT COPY PASTE IT FROM GOOGLE IT WILL BE CAUGHT IN MY UNIVERSITY SOFTWARE.

THANK YOU