M Wed Jan 13 Question 1 Not yet answered Marked out of 15.00 As a winner of a Lottery, you have 3 offers to be paid. (You can invest your money at 10% per year): Offer: an annual Perpetual Payment of $500,000 starting 3 years from now Offer ll: 2 payments of $3,000,000 each. The first is in 2 years from now and the second is in 5 years from now Offer Illa lumpsum amount (C) that you can receive now a) How much should be the amount (C) so that you will be indifferent between Alternatives 18 2 b) If the lumpsum amount (C) is $4,000,000, which offer will be the best one? A- offer 1: PV AT 2