Investors caring only about the time value of money

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Consider the choice between $25,000 today or $1,000 per year for 30 years, with investors caring only about the time value of money. Which of the following is true? A. At an interest rate of 0%, an investor will prefer $25,000 today. B. An investor choosing $25,000 today has a higher discount rate than an investor choosing $1,000/yr. C. An investor choosing $25,000 today has a lower discount rate than an investor choosing $1,000/yr. D. Both a and c.

Reference no: EM13877772

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