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Time value of money

Description

Review the attached Time Value of Money Worksheet. (Note you do not need to submit this worksheet). Describe why time changes the value of money. Suppose you were given the opportunity to win $500 million dollars. Would you take the lump sum payment or $50 million for 10 years? Which option gives you the most value? Why? Post your discussion in 3 – 4 paragraphs and be specific using time value terms (future value, present value, rate, etc). Be careful not to make assumptions or generalizations. Please use the worksheet folder provided as a reference.

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Phyllis Mugure

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