Assume that you went to Las Vegas and hit the jackpot for $5 million.

Assume that you went to Las Vegas and hit the jackpot for $5 million. Further assume that you
were offered a choice to receive the $5 million today, or receive it in two years. According to one of
the principles of finance, which would you take?

A) the $5 million today because it would be worth more than if you would receive it in two years
B) the $5 million in two years because it would be worth more than if you would receive it today
C) You would be indifferent as to when you would receive the $5 million.
D) the $5 million in two years because you would be afraid of spending it all right away

ANSWER

A