Assume you just won the Florida lotto and must make a choice between taking a lump sum (single) payment equal to 56 million today or 30 annual payments equal to $400,000. If you take the annual payments, the first payment will be given to you today. Which alternative should you select if you can invest at 5.5 percent compounded annually? The $6 million lump sum payment is better, because it is always better to receive money today than to wait until some future period regardless of the amounts involved. The $6 million lump-sum payment is better, because it is greater than the present value of the $400,000 annuity, which equals $5, 813, 498. The $400,000 annuity should be selected because its present value. which equils $6133, 240, is greater than the $6 million lump sum amount that would be received the today, The $6 million lump-sum payment should be selected because it can be invested at 5.5 percent, and will grow to an amount in the future that is greater than the present thus value of the $400,000 annuity The two choices are identical, so you should flip a coin to make the decision. (Please show your work in excel or on paper). PV = (0.055, 30, 400000.0.1) Type I because payments are made at the beginning of period