Capital investment appraisal
. You will be indifferent between receiving £10,000 in 2 years' time and £8,265 today when interest rates are 10%.

. You would rather receive £8,000 today than £9,000 in a year's time when interest rates are 12.5%.

. If money can be invested to earn a return of 5% per annum for the next three years, you will be worse off if you accept £40,000 today rather than £45,000 in three years' time.

. You would prefer to receive £20,200 in two years' time rather than £17,300 now when interest rates are 7.5%.