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Chrissie just won the lottery, and she must choose between three award options. She can elect to receive a lump sum today of $60 million,
Chrissie just won the lottery, and she must choose between three award options. She can elect to receive a lump sum today of $60 million, to receive 8 end-of-year payments of $9 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 9% annually, which is the best choice?
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