Question: You are presented with two options: (1) receive $600 today or (2) receive $200 a year at the end of every years for five years

You are presented with two options: (1) receive $600 today or (2) receive $200 a year at the end of every years for five years beginning two years from now?

What is the PV of option 1? What is the PV of Option 2?

Which option would you prefer and why?

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