3 E11-6 (Algo) Comparing Options Using Present Value Concepts [LO 11-S1] 2 points 04 4449 After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $38 million. You have three options. (a) Receive 51.9 million per year for the next 20 years. (c) Have $2.5 million today and receive 51,600,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 12 percent on investments, Skipped eBook Hint Pro Required: 1. Calculate the present value of each option, (Euture Value of $1. Present Value of $1. Euture Value Annuity of $1. Present Value Annuity of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to the nearest whole dollar. Enter your answers in dollars, not in millions.) References Present Value Option A Option B Option 3 (a) Receive $1.9 million per year for the next 20 (b) Have $12.5 million today. Have $2.5 million today and receive $1,600,00 (c) years. 2 points Your financial adviser tells you that it is reasonable to e 04:44:31 Required: 1. Calculate the present value of each option. (Future V- Annuity of $1.) (Use appropriate factor(s) from the tabl answers in dollars, not in millions.) Skipped eBook Present Value Hint Print Option A Option B Option C References 2. Determine which option you prefer. O Option A Option B O Optionc