Explore BrainMass

Explore BrainMass

    Time value of money

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Sharon Smith will receive $1 million in 50 years. The discount rate is 14. As an alternative, she can receive $2,000 today. Which should she choose?
    $1 million dollars in 50 years
    $2,000 today
    she should be indifferent
    need more information

    © BrainMass Inc. brainmass.com December 24, 2021, 7:42 pm ad1c9bdddf
    https://brainmass.com/business/the-time-value-of-money/alternatives-using-time-value-money-211936

    Solution Preview

    In order to make the decision we need to compare the present value of the two alternatives.
    $2,000 is to be received today, so the ...

    Solution Summary

    The solution explains how to choose among alternatives using the time value of money

    $2.49

    ADVERTISEMENT