Question
You are given the option between receiving $500 in three years at a discount rate of 10% or $400 in two years at a discount
You are given the option between receiving $500 in three years at a discount rate of 10% or $400 in two years at a discount rate of 8%. Which option should you choose?
| The $400 because you receive it sooner | ||
| The $500 because it is worth more to you in today's dollars | ||
| Both options are equally acceptable | ||
| Neither option |
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
