years) or as a single amount of $475,000 paid immediately. a. If you expect to earn 6% annually on your investments over the next 30 years, ignoring taxes and other considerations, which alternative should you take? Why? b. Would your decision in part a change if you could earn 8% rather than 6% on your investments over the next 30 years? Why? c. At approximately what interest rate would you be indifferent between the two options? different timing of cash flows. A way to make a meaningful comparison of the two alternatives is to compare their present values. If you take the prize as an annuity, the present value of the 30 -year ordinary annuity is $ | If you take the prize as a single amount, the present value of the lump sum is $ Which alternative should be chosen? (Select the best answer below.) Lump sum, because the present value is greater. Annual payments, because the present value is greater. b. If you earned 8% rather than 6% on your investments, the present value of the 30 -year ordinary annuity is $ Which alternative should be chosen? (Select the best answer below.) Lump sum, because the present value is greater. Annual payments, because the present value is greater. c. On a strictly economic basis, the rate at which you would be indifferent between the two plans is (Round to the nearest cent.) (Round to the nearest dollar.) (Round to the nearest cent.) \%. (Round to two decimal places.)