Part C: The next PowerBall Jackpot is worth $312 million.

Option A: Cash Value (today): $175.1 million

Option B: You receive 30 graduated payments, with the first payment made today. The annual payments increase by 5% until the 30th and final payment. The 30 payments added up equal the value of the jackpot (yes, summed along the time line)

First, calculate the first payment of the annuity. Next, determine the rate of return that would make you indifferent between the two opitons