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Tri-State Megabucks Lottery advertises a $10 million grand prize. The winner receives $500,000 today and 19 annual payments of $500,000. A lump-sum option of $5
Tri-State Megabucks Lottery advertises a $10 million grand prize. The winner receives $500,000 today and 19 annual payments of $500,000. A lump-sum option of $5 million payable immediately is also available. Suppose you won the lottery, what factors should you take into account in deciding whether you should take the annuity option or the lump-sum option
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