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Your father offers you a choice of $140,000 in 11 years or $45,000 today, Use Appendix B as an approximate answer, but calculate your final
Your father offers you a choice of $140,000 in 11 years or $45,000 today, Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 10 percent, what is the present value of the $140,000 ? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. a-2. Which offer should you choose? $45,000 today $140,000 in 11 years b-1. Now assume the offer is $140,000 in 8 years or $45,000 today. What is the present value of the $140,000 at 10 percent for 8 years? Note: Do not round intermediate calculations. Round your final answer to 2 decimal places. b-2.Now, which offer should you choose? $140,000 in 8 years $45,000 today
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