Now it's time for you to practice what you've learned. Suppose that Eric just won the lottery and must choose between three award options: 1. A lump sum of $25,000,000 received today 2. 15 end-of-year payments of $3,125,000 3, 40 end-of-year payments of $2,250,000 Assume the Interest rate is 8.00%, entered as 8 on your financial calculator Note: Take the absolute value of the present value when answering this question. Using a financial calculator yields a present value for option 2 of approximately and a present value for option 3 of approximately (when the interest rate is 8.00%). Based on this, Eric should choose option if he seeks to maximize present value Now assume the Interest rate is 9.00%, entered as 9 on your financial calculator. Note: Take the absolute value of the present value when answering this question. Using the table you just filled out and a financial calculator, yields a present value for option 2 of approximately value for option 3 of approximately (when the Interest rate is 9.00%). Based on this, Eric should choose option seeks to maximize present value. and a present If he Assume the Interest rate is 10.00%, entered as 10 on your financial calculator, Note: Take the absolute value of the present value when answering this question. Using the table you just filled out and a financial calculator, yields a present value for option 2 of approximately and a present value for option 3 of approximately (when the Interest rate is 10.00%). Based on this, Eric should choose option if he seeks to maximize present value. As the interest rate increases, options 2 and 3 become attractive, relative to option 1