robert has just won the flyball lottery. he has two options for receiveing his prize. the first option is to accept a 125000 cash payment today. the second option is to receive 21,500 dollars at the end of each of the next 19 years and a 20,500 lump sum payment in the 20th year. robert can invest money at a 7% rate.

A. calculate the present value of the two options:

option 1=

option 2=

which option should Robert choose to receive his winnings?

B. Robert could invest money at 10%, calculate the present value of the two options.

Option 1=

option 2=

which option should he choose?