US Problem 6-4 Your answer is partially correct. Try again. Leon Long has just learned he has won a $502,400 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Leon takes all the money today, the state and federal governments will deduct taxes at a rate of46% immediately, 2 Alternatively, the lottery offers Leon a payout of 20 equal payments of $37,100 with the first payment occurring when Leon turns in the winning ticket. Leon will be taxed on each of these payments at a rate of 25%. Compute the present value of the cash flows for lump sum payout. (Round factor values to 5 decimal places, e.g 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Lump sum payout 7 271296 Assuming Leon can earn an 9% rate of return (compounded annually) on any money invested during this period, compute the present value of the cash flows for annuity payout. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal 27825 Present value of annuity payout Which pay-out option should he choose