Section III just won the lottery. The class has been given 3 options.

Explain which option the class should choose. Please show your work.

a. Take a lump sum of $29,000,000.

b. Take $185,000 per month for the next 20 years with an opportunity cost of 4.5 % compounding with each payment. c. Take a lump sum of $90,000,000 in 25 years assuming the same yearly discount rate.