Sharon Smith Will Receive $1 Million in 20 Years

Multiple Choice

Sharon Smith will receive $1 million in 20 years. The discount rate is 10%. As an alternative, she can receive $200,000 today. Which should she choose?

A) The $200,000 today.
B) The $1 million in 20 years.
C) Both equal the same value.
D) Neither option would be preferred.