Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. can someone explain this to me? question 40 0 /

Can someone explain this to me? Question 40 0 / 4.5 pts You...

70.2K

Verified Solution

Question

Finance

imageCan someone explain this to me?

Question 40 0 / 4.5 pts You just won the Price Cup, awarded to the accounting student with the highest grade in the class, congratulations! The winner has a choice between receiving: Option 1) $200,000 today Option 2) $250,000 3 years from today Assuming a 6% discount/interest rate, what would you choose and why? (Round to the nearest dollar, if necessary.) You Answered Option 2 because the present value of Option 2, $668,253 is greater than $200,000. I have no idea. Are you sure I won the Price Cup? Correct Answer Option 2 because the present value of Option 2, $209,905, is greater than $200,000. o Option 2 because $250,000 is greater than $200,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What would happen to the O2-binding curve of hemoglobin when BPG is removed from its environment? A. The...

Biology
Q

*****-*-*-*-*-*-*-CONCRETE MIX DESIGN AND PRODUCTION QUESTION 1: If the amount of material required for 1m 3...

Civil Engineering
Q

Search the www to identify a global company which displays significant success in the pursuit of...

Finance
Q

On January 1, 2012, P Company purchased 95% of the outstanding common stock of S Company...

Accounting
Q

1 point Calculate the distance between the lines and L 1 1t y 4 31...

Geometry
Q

Jed is standing 10 meters from a maple tree that is14 meters from a willow...

Basic Math
Q

Emily and her twin sister Erica were each given $500 for their birthday. Emily deposits...

Basic Math
Q

ld 38flushed-false&cld-4756104&kcenterwin kld 4550701168 10/20/17 1 1 :07 AM George Flom OPM 200 Fall17 Save...

Accounting
Q

Los auditores independientes expresan una opinin sobre: Seleccione uno: A. Precisin del...

Accounting
Q

Static Budget Actual Results Production in units 27,000 kits 29,400 kits Direct materials $ 170,100...

Accounting
Q

You purchased land 3 years ago for $75,000 and believe its market value is now...

Finance
Q

How much is accumulated in each of the savings plans over four years? a. Deposit...

Accounting