EVALUATING LUMP AND SUMS AND ANNUITIES Crissie just won the lottery, and she must choose among three award options. She can elect to receive a lump sum today of $61 million, to receive 10 end-of-year payments of $9.5 million, or to receive 30 end-of-year payments of $5.5 million. (Hint compute the Present Valies of all options and compare)
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. Explain how interest rate influence her choice