LuckyEd, 70,just won a Power Ball Lotto worth $120 million. He has two options collect his winnings:

Option #1: Annuity Option: One Pmt per year. In all 20 pmts

Option # 2: Cash Option: Lotto Commission would use a Discount Rate of 10% to calculate it.

Assume Ed to be 40% Marginal Tax bracket.On Your advice, Ed has decided to take the Cash Option.

Based on your calculation Joe would, under Cash Option,wouldreceive a Check of:

Note: The answers are rounded to Zero Decimal points.