present value and future value

[tultul_gis]

You are considering two lottery payment streams. Choice A pays $1,000 today and choice B pays $1,750 at the end of five years from now. Using a discount rate of 5%, based on present values, which would you choose? Using the same discount rate of 5%, based on future values, which would you choose? What do your results suggest as a general rule for approaching such problems? (Make your choices based purely on the time value of money.)

 

[tkhunny]

You are starting to be perceived as abusive. Shwo your work. Please do the easy ones like this on your own and show us what you get.

No one wants to do your homework for you.