Question 11 22 pts Ellen just won a $750,000 prize in the lottery. The lottery allowed her to choose how she would like to receive the prize: (1) If Ellen takes all the money today, the government will deduct taxes at a rate of 35% immediately. (2) The lottery offers Ellen a payout of 10 equal payments of $72,000 with the first payment occurring when Ellen turns in the winning ticket. Ellen will be taxed on each of these payments at a rate of 7.5%. (3) The lottery also offers Ellen a payout of three different payments. They are $300,000 on year 3, $250,000 year 6, and $200,000 on year 9. Ellen will receive the payment at the beginning of year mentioned. The government will deduct taxes at a rate of 7.5% on each of those payments. Instructions Assuming Ellen can earn an 8.5% rate of return (compounded annually) on any money invested during this period, which payout option should she choose? Show your computation Upload Choose a File