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Show work for this answer please: You have just won a lot of money. The authorities have given you a choice of either taking a
Show work for this answer please: You have just won a lot of money. The authorities have given you a choice of either taking a lump sum of $2,000,000 or a 30-year annuity of $125,000. Both payments are assumed to be after-tax. The discount rate is 10%. What will you do?
(A) You will choose the lump sum payment of $2,000,000.
(B) You will choose the 30-year annuity payments.
(C) You will be indifferent between the two choices.
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