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You are studying two options presented to you. 1) Take $75,000 today. 2) Take $135,000 in five (5) years. Your underlying assumption is the interest
You are studying two options presented to you.
1) Take $75,000 today. 2) Take $135,000 in five (5) years. Your underlying assumption is the interest rate/opportunity cost/discount rate is 8%. Which option would you choose and why? Base your answer only on Present Value or Future Value specific calculations. Show your calculations. You can approach this problem several ways - pick whichever you prefer.
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