You just won a $20 million lottery. You can choose either receiving $8 million today or $800,000 per year for 25 years. Assuming you think you, can earn 8% per year on your investments, compounded annually, which of these alternatives is preferable?

a) $8 million lump sum is preferable because the annuity is worth $2,920,358

b) Annuity is preferable because its worth $20 million

c) $8 million lump sum is preferable because the annuity is worth $7,854,518

d) Annuity is preferable because it is worth $8,539,821 to you