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Why is $200 you will receive in one year worth more to you than $200 you will receive in four years? OA. The likelihood that a payment is not received increases the farther into the future the payment date lies. B. The purchasing power of money usually erodes with the passage of time. C. The opportunity cost in waiting to receive a payment is greater the farther into the future the payment date lies. D. A and B only. E. All of the above. Ο ΟΙΟ

Why is $200 you will receive in one year worth more to you than $200 you will receive in four years? OA. The likelihood that a payment is not received increases the farther into the future the payment date lies. B. The purchasing power of money usually erodes with the passage of time. C. The opportunity cost in waiting to receive a payment is greater the farther into the future the payment date lies. D. A and B only. E. All of the above. Ο ΟΙΟ

Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance
Section: Chapter Questions
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Why is $200 you will receive in one year worth more to you than $200 you will receive in four years? A. The likelihood that a payment is not received increases the farther into the future the payment date lies. B. The purchasing power of money usually erodes with the passage of time. OC. The opportunity cost in waiting to receive a payment is greater the farther into the future the payment date lies. D. A and B only. E. All of the above.
Transcribed Image Text:Why is $200 you will receive in one year worth more to you than $200 you will receive in four years? A. The likelihood that a payment is not received increases the farther into the future the payment date lies. B. The purchasing power of money usually erodes with the passage of time. OC. The opportunity cost in waiting to receive a payment is greater the farther into the future the payment date lies. D. A and B only. E. All of the above.
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