Spring 2017
Laura Cardella
FIN 3320
Financial Management Test #2 CHAPTER 5: Part 1 A Simple Offer • Would you rather have… • $1,000 right now? • Or $1,000 one year from today? • Why? • What about $1,001 in a year? Or maybe $1,002? • Time value: value of waiting • 1,000 dollars today is not the same as 1,000 in a year Potential Projects • Each project requires an upfront investment of $5,000 • Project 1: Returns $5,000 in 2 years • Pr