Solved

You Can Receive $10,000 Today or $3,000 Per Year for the Next

Question 1

Multiple Choice

You can receive $10,000 today or $3,000 per year for the next five years.If the required rate of return is 10%,what option should be selected? (The present value of an ordinary annuity at 10% for five periods is 3.7908.The present value of one at 10% for five periods is 0.6209.)


A) Receive $10,000 today.
B) Receive $3,000 per year for the next five years.
C) The results are the same for both options.
D) Neither option is desirable.

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents