8. Your father has promised you a large sum of money. He has offered you the following THREE choices: (i) Accept $100,000 today or, (ii) Accept $110,000 at the end of year 2 or, (iii) Accept $38,000 at the end of every year for the next 3 years. Assume the interest rate is 10% p.a. Which option would you select? Select one: a. The $38,000 at the end of every year for 3 years b. No difference between the three options c. $110,000 at the end of next year d. $100,000 now

8. Your father has promised you a large sum of money. He has offered you the following THREE choices: (i) Accept $100,000 today or, (ii) Accept $110,000 at the end of year 2 or, (iii) Accept $38,000 at the end of every year for the next 3 years. Assume the interest rate is 10% p.a. Which option would you select? Select one: a. The $38,000 at the end of every year for 3 years b. No difference between the three options c. $110,000 at the end of next year d. $100,000 now

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3PB: Use the tables in Appendix B to answer the following questions. A. If you would like to accumulate...

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