Question: You are offered $ 1 2 0 , 0 0 0 today or $ 3 8 0 , 0 0 0 in 1 2 years.

You are offered $120,000 today or $380,000 in 12 years. Assuming that you can earn 16 percent on your money, which should you choose? Part 1 If you are offered $380,000 in 12 years and you can earn 16 percent on your money, what is the present value of$380,000?

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