A lottery administrator has just completed the state's most recent $50 million lottery. Receipts from lottery sales were $50 million and the payout will be $5 million at the end of each year for 10 years. The expenses of running the lottery were $800,000.

The state can earn an annual compound rate of 8 percent on any funds invested.

(a) Calculate the gross profit to the state from this lottery.

(b) Calculate the net profit to the state from this lottery (no taxes