Lottery Your dreams of becoming rich have just come true. You have won the State of Tranquility's Lottery. The State offers you two payment plans for the $5,000,000 advertised jackpot. You can take annual payments of $125,000 at the end of the year for the next 40 years or $1,490,577 today a. If your investment rate over the next 40 years is 10%, which payoff will you choose? b. If your investment rate over the next 40 years is 7%, which payoff will you choose? c. At what investment rate will the annuity stream of $125,000 be the same as the lump-sum payment of $1,490,577? a. If your investment rate over the next 40 years is 10%, what is the present value of the $125,000 annual payments today? \$ (Round to the nearest dollar.)