Marie Is Considering Several Possible Investment Alternatives Required:
1

question 126

Essay

Marie is considering several possible investment alternatives. $$\begin{array} { | l | l | } \hline \text { Option A } & \text { Marie could receive } \$ 10,000 \text { today } \\\hline \text { Option B } & \text { Marie could receive } \$ 3,000 \text { at the end of each year for four years } \\\hline \text { Option C } & \text { Marie could receive } \$ 15,000 \text { five years from now } \\\hline\end{array}$$ Required:
1. Calculate the present value of each option assuming Marie can earn 8% on any of the investment funds.
2. Which option results in the greatest financial benefit to Marie ?

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Definitions:

Different Wages

The variation in earnings paid to employees for their work, often based on factors like experience, skill, job type, or geographical location.

Human-capital Investment

The process of acquiring and enhancing an individual's skills and knowledge, which increases potential productivity and earnings.

Discrimination

Unfair treatment of individuals based on characteristics such as race, gender, or age, rather than merit or performance.

Wage Differentials

The variation in wage rates due to factors such as occupation, industry, location, or the skills and experience of workers.