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Crissie just won the lottery , and she must choose between three award options. She can elect to receive a lump sum today $61 million,
Crissie just won the lottery , and she must choose between three award options. She can elect to receive a lump sum today $61 million, to receive 10 end-of-year payments of $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 thinks she can earn 8% annually, which should she choose? c. If she thinks she can earn 9% annually, which should she choose? d. Explain how interest rates influence the optimal choice
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