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Daniella has just won a lucky draw cash RM61 million (PV). The organizer has given her 3 options to choose. Option 1 receive a lump

Daniella has just won a lucky draw cash RM61 million (PV). The organizer has given her 3 options to choose.

Option 1 receive a lump sum of RM61 million today

Option 2 receive 10 end-of-year payments of RM9.5 million

Option 3 receive 30 end-of-year payments of RM5.5 million

a) Which option should she choose if she earns 7% annually? b) What is the best option if she expects to earn 8% annually? c) Which option is recommended if she was to earn 9% annually?

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