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Consider the following alternatives: (i) receive $200 in 2 years from now; (ii) receive $300 in 5 years from now; (iii) receive $400 in 7
Consider the following alternatives: (i) receive $200 in 2 years from now; (ii) receive $300 in 5 years from now; (iii) receive $400 in 7 years from now; (iv) receive $500 in 10 years from now. If the appropriate discount for all alternatives is 10%, how do you rank these alternatives?
A. | iii > iv > ii > i | |
B. | i > ii > iii > iv | |
C. | ii > iii > i > iv | |
D. | iv > ii > iii > i |
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