Choose among three reward options

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Reference no: EM131305410

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

a) If she thinks she can earn 7% annualy, which should she choose?

b) If she expects to earn 8% annualy, which is the best choice?

c) If she expects to earn 9% annualy, which option would you recommend?

Reference no: EM131305410

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