Question 1 [14 Marks] John has just won a jackpot and he must choose among the three award options. He can opt to receive a lump sum today of R61 million, to receive 10 end-of-year payments of R9.5 million, or to receive 30 end-of-year payments of R5.5 million. Required: 1.1. 1.2 If he thinks he can earn 7% annually, which option should he choose? If he expects to earn 8% annually, which is the best choice? If he expects to earn 9% annually, which option would you recommend? Explain how interest rates influence his choice. (4) (4) (4) (2) 1.3. 1.4