Time Value of Money why would TMCC be wiling to accept such a small amount today ($1,163)

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Time Value of Money why would TMCC be wiling to accept such a small amount today ($1,163) in exchange for a promise to repay about 9 times that amount ($10,000) in the future?

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Fundamentals of Corporate Finance

ISBN: 978-0077861629

8th Edition

Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan

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Question Posted: Apr 28, 2011 02:29 AM

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Why would TMCC be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?
Why would TMCC be willing to accept such a small amount today ($1,163) in exchange for a promise to repay about 9 times that amount ($10,000) in the future?
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Time Value of Money why would TMCC be wiling to accept such a small amount today ($1,163)

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Fundamentals of Corporate Finance

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