An asset has a market value of $100,and intrinsic value of $105,and a present value of $113.What is the maximum amount you would want to pay now for the asset?
A)$105
B)$113
C)$100
D)Some other amount

Question

Quizplus · Accepted Answer

The maximum amount one would want to pay for an asset would be its intrinsic value, which in this case is $105. However, since the present value of the asset is $113, paying that amount would not be a wise financial decision. Therefore, the best choice is to pay the asset's market value, which is $100.

An Asset Has a Market Value of $100,and Intrinsic Value