You just won a prize that comes with two payout choices. The first option is to get
Question:
You just won a prize that comes with two payout choices. The first option is to get $100,000 right now and nothing thereafter. The second option is to get $94,000 right now and $10,000 three years from now (and nothing after that). If your discount rate is 8%, which should you take?
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Plan You are being offered a choice between 100000 today or 94000 today plus 10000 in three year...View the full answer
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Related Book For 
Fundamentals Of Corporate Finance
ISBN: 9780137309948
4th Canadian Edition
Authors: Jonathan Berk, Peter DeMarzo, David A. Stangeland, Andras Marosi, Jarrod Harford
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