Present value vs. discount rate
The lifetime payments are worth less as your discount rate rises. Where they cross the cash line is the break-even rate.
Millionaire For Life pays the top prize as $1,000,000 a year for life — here we model that as one payment now plus one each year until your life expectancy. We tax every payment and the lump sum at the combined rate and discount future payments to today's dollars. Estimates only — not financial or tax advice; real tax brackets, state rules, longevity, and investment returns vary.