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Business, 11.10.2020 23:01 purplefish53

Kristina just won the lottery, and she must choose among three award options. She can elect to receive a lump sum today of $64 million, to receive 10 end-of-year payments of $9.8 million, or to receive 30 end-of-year payments of $5.8 million. If she thinks she can earn 7% percent annually, which should she choose? If she expects to earn 8% annually, which is the best choice? If she expects to earn 9% annually, which option would you recommend? Explain how interest rates influence her choice.

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Kristina just won the lottery, and she must choose among three award options. She can elect to recei...

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