5-22 PV OF A CASH FLOW STREAM A rookie midfielder is negotiating his first Japan Soccer Premier League contract. His opportunity cost is 10 He has been offered three possible 4-vear contracts. Payments are guar anteed, and they would be made at the end of each year. Terms of each contract are as follows: 5-23 Contract 1 $3,000,000 $3.000.000 $3,000,000 $3.000.000 Contract 2 $2.000.000 53.000.000 $4,000,000 $5,000,000 Contract 3 $7,000,000 $1,000,000 $1,000,000 $1,000,000 As his adviser, which contract would you recommend that he accept EVALUATING LUMP SUMS AND ANNUITIES Wang Yun just won the lotters and she must choose among three award options. She can elect to recente a lump sum today of 561 million, to receive 10 end-of-year payments $9.5 million, or to receive 30 end-of-year payments of $5.5 million 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. If she expects to earn 9% annually, which option would you recommend? d. Explain how interest rates influence her choice