Kristina just won the lottery, and she must choose among three reward 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% annualy, which should she choose?
b) If she expects to earn 8% annualy, which is the best choice?
c) If she expects to earn 9% annualy, which option would you recommend?