Time value of money

Anonymous
timer Asked: Oct 31st, 2018
account_balance_wallet $5

Question Description

An individual's opportunity cost is 12%, and the individual is offered to make a one-time payment in exchange for receiving $100,000 exactly 4 years from now. What is the maximum amount that this individual would be willing to pay now to receive the payment mentioned above? You may choose any period as the base period for determination of the time value of money.

Provide your work in detail and explain. Provide references for the content.

Tutor Answer

Tutor_Booth
School: Carnegie Mellon University

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Anonymous
awesome work thanks

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