As a prize, you are offered of one of the following three options: Option 1: $6,000 today, or Option 2: $8,500 in five years, or Option 3: $10,000 in seven years. Assuming you can earn 7% on your money, which option should you choose. (Briefly explain your choice and show all working to justify your answer.)

As a prize, you are offered of one of the following three options: Option 1: $6,000 today, or Option 2: $8,500 in five years, or Option 3: $10,000 in seven years. Assuming you can earn 7% on your money, which option should you choose. (Briefly explain your choice and show all working to justify your answer.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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