Question 5 (1 point) You win the lottery! You can either take the money now or...

 

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Question 5 (1 point) You win the lottery! You can either take the money now or wait 30 years and receive it then. If you get it now, then the best investment that you found is a 30 year CD that will earn 5%/year. The lottery offers you $5,000,000 if take the winnings today or $15,000,000 if you wait 30 years. Assuming their are no other risks, taxes, or opportunity costs (i.e. missing out on the fun of having $5 million now is not a deciding factor), what should you do? Take the $5,000,000 now and invest it in the CD Take the $15,000,000 in 30 years Question 6 (1 point) Time Value of Money concepts are based on the idea that a dollar today is worth less than a dollar in the future. True False Question 5 (1 point) You win the lottery! You can either take the money now or wait 30 years and receive it then. If you get it now, then the best investment that you found is a 30 year CD that will earn 5%/year. The lottery offers you $5,000,000 if take the winnings today or $15,000,000 if you wait 30 years. Assuming their are no other risks, taxes, or opportunity costs (i.e. missing out on the fun of having $5 million now is not a deciding factor), what should you do? Take the $5,000,000 now and invest it in the CD Take the $15,000,000 in 30 years Question 6 (1 point) Time Value of Money concepts are based on the idea that a dollar today is worth less than a dollar in the future. True False

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