You have the choice of recelving $50,000 now or $20,000 now and another $35,000 three years from now In terms of today's dollar, which choice is better and by how much? Money is worth 6 6% compounded annually Which choice is better? OA They are equal in value O B. The choic. $20,000 now and $35,000 in three years is better C. The choice of $50,000 now is better

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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You have the choice of recelving $50,000 now or $20 000 now and another $35,000 three years from now In terms
af today's dolar, which choice is better and by how much? Money is worth 6.6% compounded annually
Which choice is better?
O A They are equal in value
O B. The choic.
$20,000 now and $35,000 in three years is better
OC The choice of $50,000 now is better
Transcribed Image Text:You have the choice of recelving $50,000 now or $20 000 now and another $35,000 three years from now In terms af today's dolar, which choice is better and by how much? Money is worth 6.6% compounded annually Which choice is better? O A They are equal in value O B. The choic. $20,000 now and $35,000 in three years is better OC The choice of $50,000 now is better
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