BUSI 320 Comprehensive Problem 3 FALL 2019 Use what you have learned about the time value of money to analyze each of the following decisions: Decision ff1: Which set of Cash Flows is worth more now? Assume that your grandmother wants to give you generous gift. She wants you to choose which one of the following sets of cash flows you would like to receive: Option A: Receive a one-time gift of $10,000 today. Option B: Receive a $1500 gift each year for the next 10 years. The first $1400 would be received 1 year from today. Option C: Receive a one-time gift of $18,000 10 years from today. Compute the Present Value of each of these options if you expect the interest rate to be 3% annually for the next 10 years. Which of these options does financial theory suggest you should choose? Option A would be worth $ today. Option B would be worth $ today. Option C would be worth $ today. Financial theory supports choosing Option Compute the Present Value of each of these options if you expect the interest rate to be 6% annually for the next 10 years. Which of these options does financial theory suggest you should choose? Option A would be worth $ today. Option B would be worth $ today. Option C would be worth $ today Financial theory supports choosing Option Compute the Present Value of each of these options if you expect to be able to earn 9% annually for the next 10 years. Which of these options does financial theory suggest you should choose? today. Option A would be worth $ Option B would be worth $ today. Option C would be worth $_ today. Financial theory supports choosing Option How much money will Erich and Mallory have in 45 years if they put away $250 d) per MONTH at the end of each month for the next 45 years? (Remember to adjust 7.2% annual rate to a Rate per month!) e) If Erich and Mallory wait 25 years (after the kids are raised!) before they put anything away for retirement, how much will they have to put away at the end of each year for 20 years in order to have $1,000,000 saved up on the first day of their retirement 45 years from today