If you won the lottery and had the choice of a lump-sum payoff or an annuity payoff, what factors would you consider besides the implied interest rate (indifference interest rate) in selecting the payoff style?

Question description

If you won the lottery and had the choice of a lump-sum payoff or an annuity payoff, what factors would you consider besides the implied interest rate (indifference interest rate) in selecting the payoff style? Provide a quantitative example to illustrate your choice. 350 words min.

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