If you win the Jackpot, you can choose between cash or an annuity, explained below. Please, explain numerically which alternative you should choose. Note: Please solve the problem with the discount rate you believe is more appropriate Annuity Cash Powerball Jackpot for Sat, Jan 21, 2017 $153,000,000 $93,500,000 30 average annual payments of $5,100,000 Lump-sum cash: $93,500,000 -25% Federal Tax - $1,275,000 - $23,375,000 Subtotal $3,825,000 $70,125,000 The answer depends on the discount rate. If the discount rate is 3% then the annuity option is better. The answer depends on the discount rate. If the discount rate is 2% then the cash option is better. The answer depends on the discount rate. If the discount rate is 6% then the annuity option is better. The answer depends on the discount rate. If the discount rate is 3% then the cash option is better