You win a lottery and are offered the lump sum payment of $380,000.00 or the right to

receive $100,000 per year for five years.

What is the lottery payment plan implied rate of time preference (approximation is ok)?

What is your implied rate of time preference, if you decide to take the lump sum versus the

annuity? How would your expectations of future inflation affect your decision process on

choosing lump sum versus annuity? Show all calculations?