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When making an investment decision, which THREE of the following are reasons why receiving $1 today is preferable to receiving $1 in the future?
Suggested Answer: A, B, D
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12 comments · newest first
MI
Michael
3 days ago
Inflation erodes value over time. Definitely B.
TA
Tabetha
8 days ago
Agreed! Uncertainty makes future money risky.
LA
Launa
13 days ago
I think A, B, and D are key reasons.
FR
Frederic
18 days ago
I’m surprised that people don’t mention opportunity cost!
JE
Jesusita
23 days ago
Totally agree with A and B!
AR
Arminda
29 days ago
Wait, is depreciation really a reason?
NI
Niesha
1 month ago
I think C is also a big factor.
DA
Daron
1 month ago
Definitely A, B, and D!
ET
Ettie
1 month ago
I’m a bit confused about taxation and depreciation. I think they might be less relevant compared to the others, but I’m not completely sure.
CO
Corinne
2 months ago
I feel like we had a practice question similar to this, and I think re-investment opportunities are crucial. D seems like a strong choice.
TA
Tawanna
2 months ago
I’m not entirely sure, but I think inflation is a big factor too. It erodes the purchasing power of money over time, right? So B might be correct.
EV
Eveline
2 months ago
I remember discussing how uncertainty can really affect the value of future money, so I think A is definitely one of the reasons.