Multiple Choice
You have a choice among three options. Option 1: receive $900 immediately. Option 2: receive $1,200 one year from now. Option 3: receive $2,000 five years from now. The interest rate is 15 percent. Rank these three options from highest present value to lowest present value.
A) Option 1; Option 2; Option 3
B) Option 3; Option 2; Option 1
C) Option 2; Option 3; Option 1
D) Option 3; Option 1; Option 2
Correct Answer:
Verified
Correct Answer:
Verified
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