$3.$ Help solve these questions, with steps on how to use it with inputting the formulas into Excel

CHAPTER $9$: TIME VALUE ANALYSIS

Homework Problem $4\mathrm{.}4$

Assume that you just $$20$ million in the Texas lottery, and hence the state will pay you $20$ annual payments of $$1$

million at the end of each year. 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 $4\%.$

a$.$ What is the present value of your willings?

b$.$ You are now given the following options for distributing your winnings:

Option $1$: lump sum payment of the entire amount

Option $2$: annual payments as described above

Which option would you choose? Why?elp solve these questions, with steps on how to use it with inputting the formulas into Excel