Sharon Smith will receive $1 million in 50 years. The discount rate is 14%. As an alternative, she can receive $1,000 today. Which should she choose?
A) The $1 million dollars in 50 years.
B) $2,000 today.
C) She should be indifferent between the two choices.
D) More information is needeD.PV = FV × PVIF (App.B: 14%, 50 periods)
Correct Answer:
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