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In: Finance

Your girlfriend just won the Florida lottery. She has the choice of $50,000,000 today or a...

Your girlfriend just won the Florida lottery. She has the choice of $50,000,000 today or a 20-year annuity of $3,850,000, with the first payment coming one year from today. If the mutual fund of hers provides 4% of return each year for the next 20 years, which payment option is more attractive to her?

a.   $50,000,000

b.   20-year annuity of $3,850,000

c.   The two are the same

d.   Could not tell

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