Question: please help!!!! After hearing a knock at your front dooc, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company,
After hearing a knock at your front dooc, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company, It has artived with the good news that you are the big winner, having won $23 million. You have three options: a. Receive $1.15 million per year for the next 20 years. b. Have $8.75 million today. c. Have $2.75 million today and receive $850,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expoct to earn 12 percent on investments. Required: 1. Calcuiate the present value of each option. (Euture Value of \$1, Present Value of \$1, Future Value Annuity of \$1, Presant Value Annuity of $ i.) 2. Determine which option you prefer Complete this question by entering your answers in the tabs below. Calculate the present value of each option, (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of \$1.) Note: 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
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