You just won the lottery. You have a choice of three different prize options. Option #1: receive $1,200 immediately Option #2: receive $1,500 a year from now Option #3: receive $5,000 five years from now. If the interest rate is 10% the ranking of the options, from the lowest present value to the highest is
a. Option #2, Option #3, Option #1
b. Option #3, Option #1, Option #2
c. Option #1, Option #2, Option #
d. Option #1, Option #3, Option #2
e. Option #3, Option #2, Option #1
C
You might also like to view...
Which of the following is a macroeconomics question?
A) What factors determine the price of carrots? B) What determines the production of DVDs? C) What determines the inflation rate? D) What determines the wage of auto workers?
What characteristic of the endogenous growth model is crucial in giving the possibility of sustained growth?
A) It is embodied in people. B) It has constant returns to scale in production. C) It takes time to accumulate it. D) It grows at the same rate as consumption.
Black and Hispanics poverty rates in the United States are about twice as high as Asian and white poverty rates.
Answer the following statement true (T) or false (F)
If a corporation fails, the last recipients of funds that may remain are
A. common stockholders. B. bond holders. C. preferred stockholders. D. government tax collectors.