Q-2- Ali just won the lottery and he must choose between three award options. Option-1 He can elect to receive a lump sum today of PKR 61 million, Option-2 to receive 10 end-of-year payments of PKR 9.5 million, Option-3 to receive 30 end-of-year payments of PKR 5.5 million.

a. If he thinks he can earn 7% annually, which should she choose?

c. If he expects to earn 9% annually, which option would you recommend?