$1,000,000 today Problem 1. You recently won $1,000,000 in lottery. You have the option of receiving or $120,000 at the end of each year for the next 20 years Which option would you chose if you can invest money at: A. 7 Percent B. 11 Percent Use the following format for both options: 7 Percent factor A.7 Pct Year(s) Amount of cash flows Present value of Cash flows Receive the annuity Receive the Lump Sum Net Present Value in Favor of the B.11 Pct Years) Amount of cash flows 11Percent factor Present value of Cash flows Receive the annuity