Answered step by step
Verified Expert Solution
Question
1 Approved Answer
If offered the choice of receiving $ 1 , 0 0 0 today or $ 1 , 0 0 0 in one year's time, which
If offered the choice of receiving $ today or $ in one year's time, which option would you choose, and why?
multiple choice
$ today because time has value and by receiving the money today you can put it to use immediately.
$ in one year's time because time has value and so the $ will be worth more then.
$ in one year's time since waiting a year does not involve an opportunity cost.
Either option is just as good because $ is still $ regardless of when you receive it
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started