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The $25m/year is pretty bad value.

Even at earnings of only 3% above inflation, that's still $1.6B after 40 years. When you factor in the risk that a 30 year old might be dead after 40 years (about 20% if I'm reading this AU life table correctly), I would prefer the $500m upfront.

The long-term ramifications of a guaranteed $25M/yr for that amount of years could start science labs, schools, provide free education for a small country for 2 generations.. although you may find you could do OK spending the 2-3% interest on $250M, say $500,000 a year, and have that for many more years to come (assuming you only needed 50M to live on after taxes and banking systems stay afloat).
$500M up front, without a doubt.
Same here. The $25M/year is a great insurance policy to keep you from doing something stupid and blowing it all, but I'd definitely take the ~$300M or so up front after taxes.
You would have to do something monumentally stupid to blow $500m. Or even $300m.
You can say this, but the phenomenon is quite common. There is no shortage of people doing monumentally stupid things.
One jumbo jet please!
I agree, but you'd be surprised. Trusting the wrong people to manage it for you is a great way to start. Getting a god complex and becoming involved in high cost ventures in business you don't understand is a great way to finish.