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Imagine you received two offers. You need to decide which one means more money for you! OFFER # 1 : Right away, you receive $
Imagine you received two offers. You need to decide which one means more money for you!
OFFER #:
Right away, you receive $ Also, you will receive backtoback payments of $ each, six months apart, and the first one of these will take place in one year. The discount rate is percent, with daily compounding.
OFFER #:
Right away, you receive $ million. And nothing else in the future.
To make your decision, you need to first figure out how much Offer # is worth to you in today's dollars. The answer is: $
Assume thirty days in each month and twelve months in each year.
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