3. In March 2014, Warren Buffett, one of the most successful investors and the CEO of Berkshire Hathaway Inc. offered $1 billion for the winner who has a perfect March madness Bracket. The winner has two choices: A) Receive 40 annual payments of 25 million each (assume beginning-of-the-year payments) B) Receive a lump sum payment today of $500 million immediately a. Find the FV (at the end of year 40) of the two choices assuming interest rate is 3.5%? Which choice should the winner select? b. Find the PV of the two choices assuming interest rate is 3.5%? Which choice should the winner select? c. Find the FV (at the end of year 40) for the two choices assuming interest is 10%. Which choice should the winner select? d. Find the PV of the two choices assuming interest rate is 10%. Which choice should the winner select? e. At what interest rate will the annuity of $25 million be the same as the lump-sum payment of $500 million? you can With an interest rate of 5%, how much do you need to invest today so that withdraw $1,000 each year for 10 years with the first cash flow begins 5 years from today. (5 points)