Assume That You Won the Lotta Dough Lotto Jackpot for $20

Multiple Choice

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?

A) 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
B) 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
C) 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.
D) 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 it today