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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 $ 7500 today. Option B: Receive a $1000 gift each year for the next 10 years. The first $1000 would be received 1 year from today. Option C: Receive a one-time gift of $15,000 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? today today today Option A would be worth $ Option B would be worth $ Option C would be worth $ Financial theory supports choosing Option Compute the Present Value of each of these options if you expect the interest rate to be 7% annually for the next 10 years. Which of these options does financial theory suggest you should choose? today. Option A would be worth $ today today Option B would be worth $ Option C would be worth $ Financial theory supports choosing Option Compute the Present Value of each of these options if you expect to be able to earn 10% 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 $ today today today Financial theory supports choosing Option Option C would be worth $

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