Exercise 12A-6 (Algo) Basic Present Value Concepts [LO12-7] The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery. Mr. Ormsby won the week's grand prize totaling $1.12 million. The State Lottery Commission indicated that Mr. Ormsby will recelve his prize in 20 annual installments of $56,000 each. Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 8% rate of return, what is the present volue of his winnings? (Enter your answer in dollars and not in millions of dollars.)