Amount today will be compared with the present value of amount to be received later
Present Value = Amount*PVF(8%, 10 years)
= 112,000*0.463
= $51,856
Hence, it is better to receive $112,000 10 years later.
Your uncle offers you a choice of $112,000 in 10 years or $51,000 today. Use Appendix...
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