Styles Paragraph 4 C3 2 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: Which set of Cash Flows is worth more now? Decision #1: 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 $1500 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. today. today. Financial theory supports choosing Option Option B would be worth $ Option C would be worth $ 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 $ Option B would be worth $ Option C would be worth $ today. today. today. Financial theory supports choosing Option