Question

During a recession, the price of goods and services goes down because of low demand. A company that makes Ethernet adapters is planning to expand its production facility at a cost of $1,000,000 one year from now. However,a contractor who needs work has offered to do the job for $790,000 if the
company will do the expansion now instead of year from now. If the interest rate is 15% per year, how much of a discount is the company getting?

i already know the answer but when we reblace and say "if the company will do expansion after on year" what will make diffrence ? explain

Answer 1