Lotteries often give you the option of taking a lump-sum payment now or a fixed amount every year for, say, 6 years. For this question, assume that the yearly payments are $ 27,904 each year for 6 years. The first payment is made immediately, so it is not discounted, and subsequent payments are made every year thereafter. How big does the one-time lump sum payment have to be for you to prefer it rather than the 6-year payout? The lump sum is given immediately, so it is also not discounted. Use a discount rate of 10%. If you know how to do so, it might be convenient to do this calculation on a spreadsheet like Excel or Google sheets