Question $8(2$ points$)$

Assume that you won the Lotta Dough Lotto jackpot for $$20$ million. Further assume that you were offered a choice to receive the $$20$ million today, or receive it in equal installments of $$1$ million per year for $20$ years. According to one of the principles of finance, which would you take?

You would be indifferent as to when you would receive the $$20$ million since the total number of dollars received is the same either way.

The $$20$ million in equal installments of $$1$ million per year for $20$ years because it would be worth more than if you would receive $$20$ million today.

The $$20$ million today because it would be worth more than if you would receive it in equal installments of $$1$ million per year for $20$ years.

The $$20$ million in equal installments of $$1$ million per year for $20$ years because you would be afraid of spending it all right away.