Would you rather receive $1,000 now and $2,000 in two years or $2,500 in one year, using a 4% discount rate? CA) neither answer is correct K B) $2,500 in one year both answers are correct D) $1,000 now and $2,000 in two years

Would you rather receive $1,000 now and $2,000 in two years or $2,500 in one year, using a 4% discount rate? CA) neither answer is correct K B) $2,500 in one year both answers are correct D) $1,000 now and $2,000 in two years

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Would you rather receive $1,000 now and $2,000 in two years or $2,500 in one year, using a 4% discount rate?
C A) neither answer is correct
B) $2,500 in one year
C) both answers are correct
C D) $1,000 now and $2,000 in two years

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