Project #26268 - Time Value of Money

Looking to understand the time value of money in the following scenario:

Company A currently has the option to pay Company B $71 million dollars over the next 24 months payed on a quarterly basis.

or

Company A can choose the option to pay Company B $71 million dollars over the next 5 years (60 months) paid in equal ammounts annually. 

 

What is the financail benefit of Company A if they choose the second option and spread it out over 5 years rather than 24 months assuming they could be investing the money with a conservative rate of return?

 

 

Subject Business
Due By (Pacific Time) 03/31/2014 10:00 am
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