Question 6 You just won the lottery, and you must choose among three award options....
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Question 6 You just won the lottery, and you must choose among three award options. You 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 6.5% annually, which should she choose? b. If you expect to earn 7.5% annually, which is the best choice for you? c. If you expect to earn 8.5% annually, which option would you choose? I d. Reconcile your answers in question (a) - (c) above by explaining how interest rates influence your choice
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