Your father offers you a choice of $105,000 in 12 years or $47,000 today. а. If money is discounted at 8 percent, which option should you choose? Justify your answer. b. If money is still discounted at 8 percent, but your choice is between $105,000 in 9 years or $47,000 today, which should you choose? Justify your answer.
Your father offers you a choice of $105,000 in 12 years or $47,000 today. а. If money is discounted at 8 percent, which option should you choose? Justify your answer. b. If money is still discounted at 8 percent, but your choice is between $105,000 in 9 years or $47,000 today, which should you choose? Justify your answer.
Chapter5: The Time Value Of Money
Section: Chapter Questions
Problem 19P
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Can you help me with a and b?
Transcribed Image Text:Your father offers you a choice of $105,000 in 12 years or $47,000 today.
If money is discounted at 8 percent, which option should you choose? Justify your
а.
answer.
If money is still discounted at 8 percent, but your choice is between $105,000 in 9
years or $47,000 today, which should you choose? Justify your answer.
b.
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