Congratulations! You have won the lottery! Would you rather have $1 million at the end of each of the next 20 years or $15.00 million today? (Assume a discount rate of 8%.)

The present value,

PV,

of the $1 million at the end of each of the next

20 years is $nothing.

(Round to the nearest cent.)

Would you rather have $1 million at the end of each of the next

20

years or $15.00 million today? (Select the best answer below.)

A.

Since the present value of the series of $1 million payments is more than the

$ $15.00

million today, you should take the series of $1 million payments over

20

years.

B.

Since the present value of the series of $1 million payments is less than the

$ 15.00$15.00

million today, you should take the

$ 15.00$15.00

million today.

C.

Since the value of the series of $1 million payments is

2020times

$1,000,000, which is more than the

$ 15.00$15.00

million today, you should take the series of $1 million payments over

2020

years.

D.

None of the above.