What is your personal discount rate or rate of preferences? That is, how much would you pay for a promise of $1,000 to be received one year from now? Would you discount it by 10%, 5%, etc?
Do research on the Internet and show the reference for the information. Don’t forget to respond to a colleague’s posting also.
Professor’s Note: In addition to searching the Internet for text related to this threaded discussion, please watch the following videos (click on the following link to access these videos) and post your comments.
http://www.youtube.com/watch?v=ks33lMoxst0 Introduction to Present Value
http://www.youtube.com/watch?v=4LSktB7Pk_c Present Value 2
http://www.youtube.com/watch?v=nScQsMmohZ0 Time value of money calculations using the TI BAII Plus calculator – part 1
http://www.youtube.com/watch?v=EocymirVokM Lesson TVM-10-060 – Clip 06 – PV of an Annuity Due – TI BAII Financial
Grading Criteria: Try to add information not previously discussed by others. Please, provide factual information (not merely opinions) backed up by details or examples. Your comments should be in your own words and include references.