Suppose that in their divorce settlement, Ashton Kutcher offers Demi Moore $10 million spread evenly over 10 years, but she instead demands $5 million now. If the appro- priate discount rate is 8...


Suppose that in their divorce settlement, Ashton Kutcher offers Demi Moore $10 million

spread evenly over 10 years, but she instead demands $5 million now. If the appro-

priate discount rate is 8 percent, which alternative is better for Ashton and which for

Demi? What if the discount rate is 20 percent?


Aug 24, 2022
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