Sharon Smith Will Receive $1 Million in 50 Years

Multiple Choice

Sharon Smith will receive $1 million in 50 years. The discount rate is 14%. As an alternative, she can receive $1,000 today. Which should she choose?

A) The $1 million dollars in 50 years.
B) $2,000 today.
C) She should be indifferent between the two choices.
D) More information is needeD.PV = FV × PV_IF (App.B: 14%, 50 periods)