Gabrielle just won $$2\mathrm{.}5$ million in the state lottery. She is given the option of receiving a total of $$1,300,000$ now, or she can elect to be paid $$100,000$ at the end of each of the next $25$ years

Gabrielle can earn $5\%$ annually on her investments, from a strict economic point of view which option should she take?

If Gabrielle takes the prize as an annuity, the present value of the $25-$year ordinary annuity is $$,($Round to the nearest dollar.$)$

If Gabrielle takes the prize as a single amount, the present value of the lump sum is $$,($Round to the nearest dollar.$)$

Which alternative should be chosen? $($Select the best answer below.$)$

A$.$ Lump sum payment

B$.$ Annuity payments