On 12/30/15, Sam Smith had the good fortune and won the NYS Mega-Lottery Sam had all the winning numbers drawn and he won a prize of $50.000.000; New York State gave Sam a choice on how to lake b is winning prize via the following two methods: a) A lump sum distribution consisting of the Present Value of $50 million for 25 years. If Mr. Smith selects choice "a", he will lake out $5 million cash from the present value proceeds (for personal and family needs) ant invest the balance at 5% per annum for 25 years. b) A 2,000,000 annual annuity payment for the next 25 years with NO investment option. Required: Choices a) and b) are INDEPENDENT of each other. Using the Present & Future Value Tables listed below, determine the cash value for each option. In one or two sentences advise Mr. Smith of your recommendation and why! Provide specific reasons and show your computations! For each transaction, assume an effective interest rate of 5%. Select the appropriate pV table from the following list: - Future Value of 1 @ 5% for 25 years: 3.38635 - Present Value of 1 @5% for 25 years: .29530 - Future Value of Ordinary Annuity 5%/25 years 47.72710 - Present Value of Ordinary Annuity 5%/25 years 14.09394