Lotteries often give you the option of taking a lump-sum payment now or a fixed amount every year for, say, 10 years. For this question, assume that the yearly payments are $25,113 each year for 10 years. The first payment is made immediately, so it is not discounted, and subsequent payments are made every year thereafter. How big does the one-time lump sum payment have to be for you to take it rather than the 10-year payout? The lump sum is given immediately, so it is also not discounted. Use a discount rate of 5.7%.