apter 4A 0 12 You have recently won the super jackpot in the Washington State Lottery. On reading the fine print, you discover that you have the following two options: ints a. You will receive 31 annual payments of $170,000, with the first payment being delivered today. The income will be taxed at a rate of 28 percent. Taxes will be withheld when the checks are issued. eBook b. You will receive $585,000 now, and you will not have to pay taxes on this amount. In addition, beginning one year from today. you will receive $120,000 each year for 30 years. The cash flows from this annuity will be taxed at 28 percent. References Using a discount rate of 7 percent, what is the present value of your winnings? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16) Present value of Option A Present value of Option B $ 1398858 $ 1657141