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Vou just won the Power Bat Lottery worth $134,000,000 Upon reading the fine coint, you leamn that you have fwo options: Option A take the

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Vou just won the Power Bat Lottery worth $134,000,000 Upon reading the fine coint, you leamn that you have fwo options: Option A take the cash value of $75.3 milion today (betore taves) Option B. The winner is guaranteed to receive 30 graduated payments over 29 years; the frst payment is made today. These payments will increase by 3 . per ynar unti the finat payment. The first payment, received today, equals $6,000,000. Assuming a required rate of return of 5%, calculate the present value of cotion B

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