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9 March, 00:30

Esther. Vida and Clair were asked to consider two different cash flows: GH¢1000 that they

could receive today and GH¢3000 that would be received 3 years from today. Esther wanted

the GH¢1000 today. Vida chose to collect GH¢3000 in 3 years, and Clair was indifferent

between these two options. Which of the three women made the right choice?

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Answers (1)
  1. 9 March, 01:15
    0
    Esther is right. Take the cash today

    Step-by-step explanation:

    The value of money tends to decrease due to inflation. With GH¢1000 now, she can invest and work to earn more herself.
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