You have just matched all of the winning numbers of the recent Mega Gillions drawing. The jackpot was $100,000,000. Your choices are to receive your prize in equal annual installments over the next 20 years, or take a lump sum payment of $62,500,000 today. Leaving out the effect of taxes, and assuming a discount rate of 4.9% annually, which is the better option in terms of present value?

• Installments

• Lump Sum

• The Present Value of each option is the same

• Cannot determine based on the information given