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: Assume that you just won a lottery. You have a choice to choose between three options to receive the award prize amount. (4 marks)
: Assume that you just won a lottery. You have a choice to choose between three options to receive the award prize amount. (4 marks) Option 1: Receive a lump sum today of $6 million. Option 2: Receive 10 payments of $1,000,000 at the end of the year. Option 3: Receive 30 payments of $650,000 at the start of the year. Suppose you can earn 6% annually, which option should you choose?
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