Congratulations, you have won the California State Lottery. Lottery ofcials are giving you a choice of payment options. You will need to choose from one of the following streams. Assume at 10% interest rate for all scenarios. Lottery Payment Options Option Payment Frequency Option 1: Immediate payment of $500,000 Option 2: 10 annual installments of $75,000 plus a lump sum of $150,000 at the end of 7 years Option 3: $3,250,000 paid at the end of 20 years Option 4: 20 annual installments of $50,000 Consider these options without referencing the calculation methods presented in the Chapter 11 Appendix' Which option will result in receiving the most cash? Which option do you think you should choose and why? Which will be the least favorable option and why? Make sure you explain your calculation methodology and let us know how you will spend your winnings