Time value comparisons of single amounts


Time value comparisons of single amounts-In exchange for a $20,000 payment today, a well known company will allow you to choose one of the alternatives shown in the following table. Your opportunity cost is 11%. Alternative Single Amount A $28,500 at end of 3 years B $54,000 at end of 9 years C $160,000 at end of 20 years -Find the value today of each alternative. -Are all alternatives acceptable-that is worth $20,000 today? -Which alternative, if any, would you take?

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Finance Basics: Time value comparisons of single amounts
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