### Time Value of Money, opportunity cost of capital, interest rate factor

Please see the attached file for details. A. Suppose the opportunity cost of capital is 6% and you have just won a $2 million lottery that entitles you to $200,000 at the end of each year for the next 10 years. 1. What is the minimum lump sum cash payment you would be willing to take now in lieu of the 10-year annuity?