You just won a prize you can either receive Rs 1000 today or Rs-00460
You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
This multiple choice question (MCQ) is related to the book/course
vu acc501 Business Finance.
It can also be found in
vu acc501 Mid Term - Quiz No.23.
You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
Rs. 1,000 because it has the higher future value
Rs. 1,000 because you receive it sooner
Rs. 1,050 because it is more money
Either because both options are of equal value
