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Honorlock through Canvas IS activated on this assignment. Ac…

Honorlock through Canvas IS activated on this assignment. Accordingly, you need to work in a Chrome browser environment. Also devices like iPads, cellphones might not be compliant with Honorlock. Also, NO issues with Mac type of computers. Good luck.   This is a times (60 minutes) assignment, counted as a DISCUSSION.   Caselet for BusAd 131 – Spring 2024 – Glendale Community College   Jacob McFadden’s Confusion Upon Winning the Big Lottery Prize   Understanding Time Value of Money, understanding Discounted Cash Flow.   Jacob NcFadden was living a simple farmer’s life in a rural neighborhood outside Birmingham, Alabama, until he hit the big Beaucoup Millions drawing right before Christmas! In fact, he hadn’t realized that he had won until his daughter called him from Phoenix, Arizona, that the lottery ticket they had just bought while she was visiting her parents – and she had held on to the receipt in her purse then – had the big prize winning combination! Now, Jacob was in total disbelief when Jeremy, an employee of Beaucoup Millions, called him to give him the choice of his life to make. Jeremy had explained to Jacob that he could cash the $10,000,000 prize that he had just won in one of following three ways:   Get a lump sum today of $3,222,000 in his bank account; Get $500,000 at the end each of the next 20 years; Get $31,000 at the end of each month for as long as he lived (he was 49 years old at this time), AND that his heirs (and their subsequent heirs) would receive that $31,000 per month forever! “Poor” Jacob was perplexed now. He knew he had his neighbor Samantha, who worked for FinTech Advisors as a financial advisor (and accordingly had access to a financial calculator OR Excel at home). So, he went to visit on Samantha and get her financial advice on this bizarre choice to make.   Questions: Given that the going market discount rate is 12% per year, which of the 3 options above, (A), (B), or (C) should Samantha suggest for Jacob to choose? Why so? Show calculations for your reasoning. (15 points) What’s the concept involved in (B) above, and which Chapter in the textbook speaks about this concept? (2.5 points) What’s the concept involved in (C) above, and which Chapter in the textbook speaks about this concept? (2.5 points) ANY calculations shown should be one of the following: either (i) mathematical formulas, OR (ii) the keys on the calculator along with the figures keyed, OR (iii) the Excel formula along with the figures there, OR (iv) the factors from the tables on pages 622-629 of the textbook. Good luck!   Case written by Daron Kachatourian – Glendale Community College BusAd 131 – Intro to Finance – #1128 March 2024