Justin Jefferson just found out he won $2,500,000 from the lottery. He has two options for receiving the prize.
Option 1: Take the money today, with 40% immediately deducted.
Option 2: Receive 20 equal installments of $125,000 with each payment taxed at 27%. Assuming a 6% rate of return, which option should he choose?
A. Option 1, Immediate payment
B. Option 2, Installments
C. Both options are the same
D. More information needed
