ime Onternal Rase of Arsuen| Rnabris [The following information applies to the questions displayed below.] Lab Insight: You win the lottery (yay!) and you're trying to decide whether to take the $4.250,000 one-time lump sum of get $200,000 annually for life. Assume you're 25 years oid and expect to live until you're 88 . What should you do? Required: 1. Determine whether you should take the $4,250,000 as a lump sum payment or get $200,000 per year for life using net present value (NPV) and internal rate of return (IRR) analyses. Open Excel File Alt Lab 9-1 Data xisx and browse its contents. 2. Note the differences between Alt Lab 9.1 and Lab 91 . a. The net present value of cash flows should be evaluated using 3,5 , and 7 percent discount rates (different from the 2. 4, and 6 percent used in Lab 9-1). b. The annuity is paid from age 25 to 88 (different from the age 86 in Lab 9-1). Ask the Question: Should you take $4.250,000 as a lump sum payment or get $200,000 per year for life? Master the Date: Apply the same steps as Lab 9-1 to the Alt Lab 9.1 Data x ls x dataset. We'll do two types of analyses. net present value analysis using the Excel NPV 0 function as well as internal rate of return analysis using IRR0. We'll bulld the spreadsheet together to help perform this analysis: Softwore needed - Excel - Screen capture tool (Windows: Snipping Tool, Mac: Cmd+Stift+4) Data