Question: Randy just won the Powerball Jackpot for $5,000,000. Randy has the option to take a lump sum payment of $3 million now or receive payments

Randy just won the Powerball Jackpot for $5,000,000. Randy has the option to take a lump sum payment of $3 million now or receive payments of $200,000 at the end of the year for the next 30 years or receive a one-time payment of $5,000,000 in 15 years. Assuming rate of 7% and ignoring taxes, should Randy choose the lump sum payment now, the annuity payments, or the lump sum payment in 15 years? Multiple Choice Either the lump sum payment today or the annuity payments for 30 years because they have the same present value. The lump sum payment of $5 million in 15 years. The annuity payments for the next 30 years. The lump sum payment of $3 million today

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