You are offered exist1, 600 today, exist12,000 in 15 years, or exist28,000 in 26 years....
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You are offered exist1, 600 today, exist12,000 in 15 years, or exist28,000 in 26 years. Assuming that you can earn 13 percent on your money, which offer should you choose? a. What is the present value of exist28,000 in 26 years discounted at 13 percent interest rate? (Round to the nearest cent.) b. What is the present value of exist12,000 in 15 years discounted at 13 percent interest rate? (Round to the nearest cent.) c. Which offer should you choose? (Select the best choice below.) A. Choose exist1, 600 today because its present value is the highest. B. Choose exist12,000 in 15 years because its present value is the highest. C. Choose exist28,000 in 26 years because its present value is the highest
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