Assume that you went to Las Vegas and hit the jackpot for $5 million.Further assume that you were offered a choice to receive the $5 million today,or receive it in two years.According to one of the principles of finance,which would you take?
A) The $5 million in two years because you would be afraid of spending it all right away.
B) The $5 million in two years because it would be worth more than if you would receive it today.
C) You would be indifferent as to when you would receive the $5 million.
D) The $5 million today because it would be worth more than if you would receive it in two years.
Correct Answer:
Verified
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