Consider the following alternatives: i. $100 received in one year ii. $200 received in five years iii.
Question:
Consider the following alternatives:
i. $100 received in one year
ii. $200 received in five years
iii. $300 received in ten years
a. Rank the alternatives from most valuable to least valuable if the interest rate is 10% per year.b. What is your ranking if the interest rate is only 5% per year?
c. What is your ranking if the interest rate is 20% per year?
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