Let's dream together. Lets say we win the lottery, 90 million. The way the lottery works, those 90 million will be paid to you in equal payments for 30 periods. (we are not considering the 40 percent tax bite) The first payment happens today. You have the option to take the money as a lump sum equal to the present value of the cash flows using a discount rate equivalent the the rate on 30 year bonds at 4%.

Question) If your personal discount rate is 4%, what is your valuation of the cash flows discounted to the present? should you take the lump sum or take the cash flow stream?