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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Investments
Authors: William F. Sharpe, Gordon J. Alexander, Jeffery V. Bailey
6th Edition
8120321014, 978-8120321014
