Business
Business, 03.03.2020 02:38, PayeA264

Kristina just won the lottery, and she must choose among three award options. She can elect to receive a lump sum today of $62 million, to receive 10 end-of-year payments of $9.5 million, or to receive 30 end-of-year payments of $5.6 million.
(a) If she thinks she can earn 7% annually, which should she choose?
(b) If she expects to earn 8% annually, which is the best choice?
(c) If she expects to earn 9% annually, which option would you recommend?
(d) Explain how interest rates influence her choice.

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Kristina just won the lottery, and she must choose among three award options. She can elect to recei...

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