You have just won the state lottery and have two choices for collecting your winnings. You can collect $$100,000$ today or receive

$$20,000$ at the end of each year for the next seven years. A financial analyst has told you that you can earn $10$ percent on your

investments.

Required:

Calculate the present value of both the options. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Which alternative should you select?