Question: ( Present - value comparison ) You are offered $ 1 , 9 0 0 today, $ 1 2 , 0 0 0 in 1
Presentvalue comparison You are offered $ today, $ in years, or $ in years. Assuming that you can earn percent on your money, which offer should you choose?
A What is the present value of $ in years discounted at percent interest rate?
Round to the nearest cent.
B What is the present value of $ in years discounted at percent interest rate?
Round to the nearest cent.
C Which offer should you choose? Select the best choice below.
A Choose $ in years because its present value is the highest.
B Choose $ today because its present value is the highest.
C Choose $ in years because its present value is the highest.
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