Answer:
receive $20000 in 9 years is preferable because its present value is greater than $10000 i.e $10878.67
Step-by-step explanation:
given data
offered = $10,000 or $20,000
time = 9 year
interest rate = 7%
solution
here when you receive = $20000 received in 9 years
so present value =
.................1
present value =
present value = $10878.67
so here receive $20000 in 9 years is preferable because its present value is greater than $10000