Kristina just won the lottery, and she must choose among three award options. She can elect to receive a lump sum of $62 million, to receive 10-end-of-year payments of $9.5 million, or to receive 30-begining-of-year payments of $5.6 million.

a. If she thinks she can earn 7.5% annually, which should she choose?

b. If she thinks she can earn 8.5% annually, which should she choose?

c. If she thinks she can earn 9.5% annually, which should she choose?

d. Explain how interest rates influence her choice.