you are going to retire and must choose to take your retirement benefits either as a lump sum or as an annuity. Your company's benefit financial manager provides you with 2 alternative; An immediate lump sum of $2,000,000 or an annuity with 20 payments of $200,000 a year, the first payment starting today. The interest rate is 7% per year compounded annually. .Which option has the greater present value an annuity with 20 payments of $200,000 a year is better option because it provides more money An immediate lump sum of $2,000,000 is much better option to have an annuity with 20 payments of $200,000 a year is not good Option An immediate lump sum of $2,000,000, is not good as Annuity option