Your cousin has promised you a large sum of money. He has offered you the following THREE choices:

(i) Accept $120,000 today or,

(ii) Accept 120,000 at the end of next year or,

(iii) Accept $40,000 at the end of every year for the next 3 years.

Assume the interest rate is 15% p.a.

Which option would you select?

Select one:

a. The $40,000 at the end of every year for 3 years

b. $120,000 today

c. No difference between the thre

Your cousin has promised you a large sum of money. He has offered you the following THREE choices:

(i) Accept $120,000 today or,

(ii) Accept 120,000 at the end of next year or,

(iii) Accept $40,000 at the end of every year for the next 3 years.

Assume the interest rate is 15% p.a.

Which option would you select?

Select one:

a. The $40,000 at the end of every year for 3 years

b. $120,000 today

c. No difference between the three options

d. $120,000 at the end of next year

e options

d. $120,000 at the end of next year