Annual return on his investment

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Reference no: EM131323180

Kevin just won the lottery, and he must choose among three award options. He can elect to receive lump sum today of $62 million, to receive 10 end-of-year payment of $9.5 million, or to receive 30 end of year of $5.6 million.

1) If he expect to earn 7% annual return on his investment, which option would you recommend?

2) If he expect to earn 8% annual return on his investment, which option would you recommend?

Reference no: EM131323180

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