Sherritt's five-year borrowing rate is 43.171% and the Government of Canada is 1.47%. Which would you prefer? $500 from Sherritt paid today or a promise that the firm will pay you $800 in five years? Which would you choose if the Government of Canada offered you the same alternatives? Question content area bottom Part 1 You would prefer: (Select the best choice below) A. $500 from the Government of Canada today and $800 from Sherritt in five years. B. $800 from the Government of Canada in five years and $500 from Sherritt today. C. $800 from the Government of Canada in five years and $800 from Sherritt in five years. D. $500 from the Government of Canada today and $500 from Sherritt today

Answer rating: 100% (QA)

In this scenario its financially preferable to take the 500 from the Government o... View the full answer