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You work for a local nonprofit in fundraising. A benefactor offers to gift the organization $50,000 now or $100,000 in 7 years. You know that
You work for a local nonprofit in fundraising. A benefactor offers to gift the organization $50,000 now or $100,000 in 7 years. You know that the organization can invest the funds and receive a guaranteed 4% return for 7 years. Which option would you choose for the organization (assuming there is no uncertainty around receiving the gift in 7 years)? (HINT: You can compare the Present Value of the $100,000 to the $50,000 or compare the Future Value of the $50,000 based on the 4% return to the $100,000
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