Part 2

If you had a choice to receive $100 today or a $100 one year from now, which would you choose? If I owed you $100, but asked to delay the payment of that $100 for a year if I paid you an additional sum, what would that additional sum for you be?

Part 3

Time Value of Money is a process in which you account for the timing of the cash flow, size of the cash flow and the risk of the cash flow. How do these concepts relate to your answer in Part 2.