1. A lump sum is a one-time payment after a certain period of time, whereas an ordinary annuity involves equal installments in a series of payments over time. A business can use lump sum or ordinary annuity calculations for present value and future value calculations.
The present value of a lump sum is the value of the amount today
2. The present value of an annuity is the current value of future payments from an annuity, given a specified rate of return, or discount rate.
Annuity due is an annuity whose payment is due immediately at the beginning of each period.
3. The present value of a lump sum is defined as:

Where variables in the formula are explained as follows
PV = Present Value of the given amount today
FV = Future Value of the given amount
i = Discount rate
n = Number of periods
The Present value of an annuity is given as:

The variables in the equation are explained as the follows:
P = the present value of annuity
PMT = Payment per period or the amount in each annuity payment
r = the interest or discount rate
n = total number of periods or the number of payments left to receive