I just won the Michigan State Lottery which is going to provide me with a perpetual annual payment of $11,666 with the first payment a year from now. However, I would like to receive a lump sum today. What is the present value of this cash stream if the interest rate is 7 percent? Mr. N. Maduro is willing to give me $164,000 if I sell him the lottery ticket. Should I accept Mr. N. Maduros offer and why?

Group of answer choices

$201,356.98, yes because $164,000 is less.

$166,657.14, yes because $164,000 is less.

$166,657.14, no because $164,000 is less.

$163,485.71, no because $164,000 is more.

$163,485.71, yes because $164,000 is more.