Question 3 (10 points) Your cousin has recently won the lottery and has come to you for financial advice. On reading the fine print, you discover that he has the following two options: a) He will receive 31 annual payments of $275,000, with the first payment being delivered today. The income will be taxed at a rate of 26 percent. Taxes will be withheld when the checks are issued. b) He will receive $500,000 now, and he does not have to pay taxes on this amount. In addition, beginning one year from today, he will receive $170,000 each year for 30 years. The cash flows from this annuity will be taxed at 26 percent. Using a discount rate of 8 percent, which option should your cousin select