Answered step by step
Verified Expert Solution
Link Copied!

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 $1,000 today or $1,000 in one year's time, which option would you choose, and why?
multiple choice
$1,000 today because time has value and by receiving the money today you can put it to use immediately.
$1,000 in one year's time because time has value and so the $1,000 will be worth more then.
$1,000 in one year's time since waiting a year does not involve an opportunity cost.
Either option is just as good because $1,000 is still $1,000 regardless of when you receive it.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Report Of Johnstown Flood Finance Committee

Authors: Johnstown (Pa.) Flood Finance Committee, YA Pamphlet Collection

1st Edition

1246561557, 9781246561555

More Books

Students also viewed these Finance questions