This one is easy, because:
- There is no tax in Canadian lottery.
I once did this calculation in my accounting class, few variables are thrown in, but the jest of it is:
- ALWAYS take the lump sum as the time value of money is higher now than later.
- There is always price index increase, in case of economic depression, the lottery might be out of money thus can't pay you anymore, bank can only guarantee $100,000 at a time, not $75M.
- Obviously you should not do anything stupid and blew it all up in one shot and you should invest portion of it and diversify and live off the interest.
- Last but not least, you should take consideration of your age and life style, because some people might be dead before 25 years is over.
