Based on the information given the alternative that Sharon smith should choose is $200,000 today.
Using Present value approach formula
PV of $1 million = Amount/(1+i)^n
Where:
Amount=$1,000,000
i=Interest rate=10%
n=Number of year=20 years
Let plug in the formula
PV of $1 million = $1,000,000/1.10^20
PV of $1 million = $148,643.63
Based on the above calculation the present value is $148,643.63 which indicate that $200,000 today is worth more that present value of future payment.
Therefore Sharon smith should choose or opt for the receipt of $200,000 today.
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