You won the state lottery this morning and you have two options to claim your winnings of $45M : You can ask for an annuity of 25 years (equal payments at the end of each year), or you can get a lump-sum of $26.5M. If you believe that the proper discount rate for this cash flow stream is 4.7%, which option do you choose and how much more do you get in today's dollars? I am indifferent between these two options I choose the lump-sum payment and I get $350,207 more I choose the lump-sum payment and I get $198,457 more I choose the annuity payments and I get $350,207 more I choose the annuity payments and I get $198,457 more