What is the best combination

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Question - You won the lottery and now have to choose between a $635,291 annuity that lasts for 23 years and a lump sum payment of $10,692,158 that you would receive next year. Your discount rate is 12.4% EAR. You can pass the winnings through a S-Corp or a C-corp. The individual tax rate for gambling winnings is 60%, the corporate tax rate is 35% and the individual capital gains tax rate is 15%. What is the best combination?

Reference no: EM133028248

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