16. Compare two investment $200.00 10 years from opportunities: Project 1 guarantees $100.00 5 years from now, and Project 2 guarantees now. If your investment retum is 20%, which proyect is worth more to you? O A. Project 1 O B. Project 2 O C. the same O D. cannot decide 17. The present value of a perpetuity decreases when the decreases O A. number of investment periods O B. annual discount rate O C. perpetuity payment ?D. both Band C Francis Peabody just won the $89,000,000 Califormia State Lottery. The lottery offers the winner a choice of recelving the winnings in a lump sum or in 26 equal annual installiments (that sum to 89,000,000) to be made at the beginning of each year. Assume that funds would be invested at 7.65%. Francis is trying to decide whether to take the lump sum or the annual installments. What is the amount of the lump sum that would be exactly equal to the present value of the annual installments? Round off to the nearest $1. 18. O A. $38,163,612 ??. s89,000,000 O C. $41,083,128 O D. $13,092,576 19. You plan to buy a Ferrari sports car in 5 years. Your dream model costs $225,000 now and you expect the price to go up 10% per year. To get your dream car, you plan to make amonthly saving starting one month from now for 60 monthly savings. How much do you need to save each month in order to buy the car in 5 years, assuming that the monthly compounsing interest rate is 6%? ? A. $5.357 O B. $64.282 O c. $3.225 O D. $3,750 O E. $5,194 20. Money has a greater time value O A. when the future is uncertain. O B. when investors are willing to assume greater risks. ? C. when rates of return are higher. O D. when rates of return are lower