Suppose that Van just won the lottery and must choose between three award options:

A lump sum of $$25,000,000$ received today

$15$ end$-$of$-$year payments of $$3,125,000$

$40$ end$-$of$-$year payments of $$2,250,000$

Assume the interest rate is $8\mathrm{.}00\%,$ entered as $8$ on your financial calculator.

Note: Take the absolute value of the present value when answering this question.

Using a financial calculator yields a present value for option $2$ of approximately

and a present value for option $3$ of

approximately

$\_($when the interest rate is $8\mathrm{.}00\%).$ Based on this, Van should choose option

if he seeks to maximize

present value.