When you graduate from college, your mother plans to give you a gift of $ 40000 to start you on your way. However, to determine what you learned in business school, your mother presents you with four options on how to receive the gift. Which of the four options presented by your mother will yield the greatest present value toyou? L

A. A lump sum of $ 40000 after grad school (2 years) assuming a 5% discount rate

B. A lump sum of $ 40 000 after grad school (2 years) assuming a 2% discount rate

C. $ 20000 per year for the next 2 years using a 2% discount rate

D. A lump sum of $ 40000 today

Answer rating: 100% (QA)

Present value is as follows A 40000PVF52 years 40000... View the full answer