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Option 1: You won $5,000,000 in the Massachusetts Lottery's Halloween Bonanza game. It pays out 10 years from now. How much is it worth today?

Option 1: You won $5,000,000 in the Massachusetts Lottery's Halloween Bonanza game. It pays out 10 years from now. How much is it worth today? Option 2: You won a similar prize, but it pays out $500,0000/yr for the next 10 years. Option 3: You won a prize that pays out $600,000/yr for the next 15 years. What is your prize worth today assuming a 2% interest rate? Which prize would you rather receive assuming it is taxable at a 55% tax rate? Please explain your answer with all calculations. Let us know if you used the TVM tables, or if you used a financial calculator. Then, tell us in great detail what steps you took to arrive st your answer.

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