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Angelica is already trying to decide what to do with future lottery winnings, but she hasn't won yet! The drawing this Saturday has a projected

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Angelica is already trying to decide what to do with future lottery winnings, but she hasn't won yet! The drawing this Saturday has a projected lump-sum payout of $4,560,000. Alternatively, the winner could accept an annual payout of $400,000 for the next 20 years. Angelica, who is 25 years old, estimates that a comparable investment could earna 12% return in the current market. Clickhere to view the factor table (a) Your answer has been saved. See score details after the due date. Which payout option should Angelica choose when she wins the lottery? (Round present value factor calculations to 5 decimal places, es. 1.25124 and final answer to 2 decimal places e. 5.5,125.36 ) PV of annual payment Angelica should choose the payment. If Angelica chooses the lump-sum payment, she will invest it and try not to touch any of the earnings until her retirement. She w then use the entire value of the investment to purchase an island in the Mediterranean. If she plans to retire in 20 years and her investment consistently earns 12% annually, how much will her budget be for the island? (Round present value factor calculations 5 decimal places, es. 1.25124 and final answer to 2 decimal places e. 5,125.36.) Budget What if the investment earns only 5% annually? (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places e. 5,5,125.36.) Budget If Angelica instead plans to purchase a nice home on the coast with her fump-sum lottery winnings right now, but also wants to purchase an istand in the Mediterranean when she retires in 20 years, how much would she need to invest each year in order to reach the same total investment value as in part (b) (consider both the 12% and 5% options)? (Round present value factor colculations to 5 decimal places, es. 1.25124 and final answers to 2 decimal places es, 5,125.36.)

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