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Business, 30.04.2021 15:40 terriblexsiren

a. Assume that you just $30 million in the Texas lottery, and hence the state will pay you 20 annual payments of $1.5 million at the end of each year. If the rate of return on securities of similar risk to the lottery earning (e. g., the rate on 20-year U. S. Treasury bonds) is 5%, what is the present value of your winnings? - Option 1: a lump sum payment of $30 million up front - Option 2: 20 annual payments of $1.5 million b. Considering this, which option should you take? Explain your answer.

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a. Assume that you just $30 million in the Texas lottery, and hence the state will pay you 20 annual...
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