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