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Much to your surprise, you were selected to appear on the TV show "The Price is Right". As a result of your powers in identifying how many rolls of toilet paper a typical American family keeps on hand, you win the opportunity to choose one of the following: $2,000 today, $9,000 in 10 years, or $25000 in 28 years. Assuming that you can earn 7% on your money, which should you choose?

If you are offered $9000 in 10 years and you can earn 7 percent on your omney what is the present value of $9,000.

If you are offered $25,000 in 28 years and you can earn 7 % on your money, what is the present value of $25,000.

Financial Management, Finance

  • Category:- Financial Management
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