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Question
Assume that you went to Las Vegas and hit the jackpot for $5 million. Further assume that you were offered a choice to receive the $5 million today, or receive it in two years. According to one of the principles of finance, which would you take?A) the $5 million in two years because you would be afraid of spending it all right away
B) the $5 million in two years because it would be worth more than if you would receive it today
C) You would be indifferent as to when you would receive the $5 million.
D) the $5 million today because it would be worth more than if you would receive it in two years
Answer
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