When using present value to examine Head Start, a dollar worth of the short-term benefits _________ a dollar worth of long-term benefits.
A)has the same present value as
B)has a smaller present value than
C)has a greater present value than
D)is more uncertain than

Question

Quizplus · Accepted Answer

When using present value to examine benefits, a dollar worth of short-term benefits has a greater present value than a dollar worth of long-term benefits because the value of money decreases over time due to inflation and the opportunity cost of not having the money available for other investments.

When Using Present Value to Examine Head Start, a Dollar