Acceptable based on the information

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Reference no: EM131107943

Show transcribed image text Congratulations! You have just won the Magazine Peddlers Sweepstakes! Spokesman Ferd McMoney has indicated that you have the choice of receiving $25,000 a year for the next 15 years with the first payment to be provided in one year or alternatively, $220,000 in cash. If you believe that your opportunity cost or return is 8%, based on the concept of time value, which should you choose? There is not enough information provided to answer the question based on time value of money concepts The S220,000cash payment The values are equivalent and either is acceptable based on the information The S25,000 per year for 15 years

Reference no: EM131107943

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Acceptable based on the information : Show transcribed image text Congratulations! You have just won the Magazine Peddlers Sweepstakes! Spokesman Ferd McMoney has indicated that you have the choice of receiving $25,000 a year for the next 15 years with the first payment to be provided..

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