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You have just won a lottery jackpot, and you must choose among the three award options. You can opt to receive a lump sum today
You have just won a lottery jackpot, and you must choose among the three award options. You can opt to receive a lump sum today of R million, to receive endofyear payments of R million, or to receive endofyear payments of R million. Required: If you think he can earn annually, which should he choose? If you expect to earn annually, which is the best choice? If you expect to earn annually, which option would you recommend? Explain how interest rates influence your choice.
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