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  • ENS 331 H Assignement - Ajeto, Joshua Allen D.

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    Jay Ey
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    The document describes a choice between receiving 100 million pesos now or 8 million pesos per year for 25 years totaling 200 million pesos. The author chooses the lump sum of 100 million pesos now because the money could be invested to earn interest and capital gains, making it more valuable now than future payments that may lose value due to inflation over time. The author believes investing the 100 million pesos could allow them to receive the full 200 million total sooner.

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    ENS 331 H Assignement- Ajeto, Joshua Allen D.

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    The document describes a choice between receiving 100 million pesos now or 8 million pesos per year for 25 years totaling 200 million pesos. The author chooses the lump sum of 100 million pesos now because the money could be invested to earn interest and capital gains, making it more valuable now than future payments that may lose value due to inflation over time. The author believes investing the 100 million pesos could allow them to receive the full 200 million total sooner.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    8 views1 page

    ENS 331 H Assignement - Ajeto, Joshua Allen D.

    Uploaded by

    Jay Ey
    The document describes a choice between receiving 100 million pesos now or 8 million pesos per year for 25 years totaling 200 million pesos. The author chooses the lump sum of 100 million pesos now because the money could be invested to earn interest and capital gains, making it more valuable now than future payments that may lose value due to inflation over time. The author believes investing the 100 million pesos could allow them to receive the full 200 million total sooner.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Ajeto, Joshua Allen D.

    BSME III
    ENS 331 H
    Assignment
    Congratulations! You are one of the luckiest winner! To claim
    your price, please choose either to receive P100 million now, or
    receive P8 million per year for 25 years (a total of P200
    million). Which one will you select and why?
    Answer: If I will be the one to choose, I will accept the P100 M
    now. Because a sum of money kept today is more valuable than a
    future payout that can be used to invest and earn interest or
    capital gains. Because of inflation, a dollar promised in the
    future is worth less than a dollar now. If my investment will
    gain interest, I may be received the 200 Million sooner.

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