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Gabrielle just won $2.5 million in the state lottery. She is given the option of receiving a of $1,200,000 now, or she can elect to

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Gabrielle just won $2.5 million in the state lottery. She is given the option of receiving a of $1,200,000 now, or she can elect to receive $100,000 at the end of each of the next 25 years. If Gabrielle can earn 7% annually on her investments, 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

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