You have just won a lottery prize that will pay you $25,000 a year for the next 20 years. You have been offered $200,000 now in exchange for your prize. If the interest rate is 4% p.a., should you sell it?

Select one:

a. Yes, because the prize is worth $185,676.37 in today's dollars.

b. You should be indifferent between keeping the prize or selling it.

c. Yes, because the prize is worth $101,332.09 in today's dollars.

d. No, because the prize is worth $339,758.16 in today's dollars.

e. No, because the prize is worth $560,900.43 in today's dollars.