Yo have won the lottery. $250 million was the grand prize which will be paid in equal instalments over the next 25 years (so payments of $10 million per year, starting today). You also have the option to take a lump sum immediately which will be calculated based on the above payout using a discount rate of 6%. Assume that you have to pay a 50% tax rate on your prize, what is your resulting payout (after tax)? Hint: Calculate the PV of the annuity due the multiply by 0.50 (that will give you the after tax lump sum)