Answer:
b. The further in the future you receive a dollar, the less it is worth today.
Explanation:
Any dollar received today is more valuable in future as on a normal level there will be some sort of earnings associated with it.
Also, as further you receive a dollar the value of that dollar today is more as the discounting rate remains constant and with increasing number of years the discounting factor decreases.
As for example if $100 is to be received after 1 year its value today @ 10% = $100/0.909 = $110.01
If received at end of year 2 then value today = $100/0.826 = $121.06
Therefore, as further a dollar is received in future, more it is worth in present today.
Thus, out of all the above wrong statement is
b. The further in the future you receive a dollar, the less it is worth today.
