Matthew won $40 million in the lottery. He can elect to receive a single lump-sum payout...

   

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Matthew won $40 million in the lottery. He can elect to receive a single lump-sum payout of $18 million after taxes or receive an annuity of $1,000,000 after tax, at the end of each year for the next 25 years. What rate of return would he need to earn to make the lump-sum payout, equivalent to the annuity payment? Matthew won $40 million in the lottery. He can elect to receive a single lump-sum payout of $18 million after taxes or receive an annuity of $1,000,000 after tax, at the end of each year for the next 25 years. What rate of return would he need to earn to make the lump-sum payout, equivalent to the annuity payment?

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