1. You have recently won the super jackpot lottery in the Queensland state lottery. On reading the fine print, you discover that you have the following two options:
2. You receive 31 annual payments of $160,000, with the first payment being delivered today. The income will be taxed at a rate of 28%. Taxes are withheld when the checks are issued.
3. You receive $446,000 now, and you will not have to pay taxes on this amount. In addition, beginning one year from today, you will receive $101,055 each year for 30 years. The cash flow from this annuity will be taxed at 28%.

Using a discount rate of 10%, which option should you select? with the step by step also show execel solution too.