Assume that you went to Las Vegas and hit the jackpot for 5 million. Further assume that you
were offered a choice to receive the 5 million today, or receive it in two years. According to one of
the principles of finance, which would you take?
A) the 5 million today because it would be worth more than if you would receive it in two years
B) the 5 million in two years because it would be worth more than if you would receive it today
C) You would be indifferent as to when you would receive the 5 million.
D) the 5 million in two years because you would be afraid of spending it all right away
Question 2
The primary goal of a publicly owned firm is:
A) maximize profits.
B) minimize shareholder risk.
C) value creation.
D) maximize revenues.
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