Understanding Present Value $$ End of Appendix Problem

You have won the state lottery. There are two ways in which you can receive your prize. You can either have $$1$ million in cash now, or you can have $$1\mathrm{.}2$ million that is paid out as follows: $$300,000$ now, $$300,000$ in one year's time, $$300,000$ in two years' time, and $$300,000$ in three years' time. The interest rate is $25\%.$

a$.$ Calculate the present value of receiving $$300,000$ per year for four years at a $25\%$ interest rate. Round your answer to the nearest dollar.

Present value, four$-$year payout: $

b$.$ Using present value as your guide, how would you prefer to receive your prize?