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Business, 13.02.2020 21:59 giannaventura00

John has received a college scholarship and can choose whether to receive it as an immediate one-time payment of $10000 or as a series of four equal payments (at the end of each year), each totaling $3000. Assume that John has a discount rate of 10%. Only considering TVM principles, which option is most valuable to John?

A. There is not enough information to determine the answer.
B. Series of four payments of $3000 each.
C. Immediate payment of $10000.
D. Both scenarios are equal.

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