Question: 16. Problem 5.21 (Evaluating Lump Sums and Annuities) E eBook Problem Walk-Through Kristina just won the lottery, and she must choose among three award options.

 16. Problem 5.21 (Evaluating Lump Sums and Annuities) E eBook Problem

16. Problem 5.21 (Evaluating Lump Sums and Annuities) E eBook Problem Walk-Through Kristina just won the lottery, and she must choose among three award options. She can elect to receive a lump sum today of $60 million, to receive 10 end-of-year payments of $9.3 million, or to receive 30 end-of-year payments of $5.5 million. a. If she thinks she can earn 7% percent annually, which should she choose? -Select- b. If she expects to earn 8% annually, which is the best choice? -Select- c. If she expects to earn 9% annually, which option would you recommend? -Select- d. Explain how interest rates influence her choice. Select

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