answer question 1,2

After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subsch company. It has arrived with the good news that you are the big winner, having won $25 million. You have three options. (-) Receive $1.25 million per year for the next 20 years. (b) Have 59.25 million today (c) Have $3.25 million today and receive $950,000 for each of the next 20 years Your financial adviser tells you that it is reasonable to expect to earn 14 percent on investments Required: 1. Calculate the present value of each option. (Euture Value of $1. Present Value of $1. Future Value Anulty of $1. Present Value Annuity of S1) (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.) Present Value Option Option B Option Required: 1. Calculate the present value of each option. (Future Value of $1. Present Val Annuity of $1.) (Use appropriate factor(s) from the tables provided. Round y answers in dollars, not in millions.) Present Value Option A Option B Option C 2. Determine which option you prefer. O Option A O Option B O Option C