Generally, how would $10,000 received in three years' time compare with $10,000 in your hand now?

Question

Quizplus · Accepted Answer

Money received in the future is worth less than the same amount of money in your hand now. For this reason we apply a discount factor to future cash flows which is less than 1.000. Multiplying any value by an amount which is less than 1.000 will make it smaller. Hence $10,000 in three years' time is worth less than $10,000 now.

Generally, How Would $10,000 Received in Three Years' Time Compare