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A Promise of a $100 Payment to Be Received One

Question 4

Multiple Choice

A promise of a $100 payment to be received one year from today is:


A) more valuable than receiving the payment today.
B) less valuable than receiving the payment two years from now.
C) equally valuable as a payment received today if the interest rate is zero.
D) not enough information is provided to answer the question.

Correct Answer:

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