Mary just won the lottery, and she must choose between two options. She can elect to receive a lump sum payment of $70 million today or she can elect to receive 30 end-of-the-year payments of $5.5 million. If the appropriate discount rate is 7%, which option should she choose? The lump sum of $70 million. The 30 year annuity because its present value is $8,013,394.14. The 30 year annuity because its present value is $68,249,726.51. The 30 year annuity because its present value is $165,000,000.
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