3...Williamhas just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $126,000cash payment today. The second option is to receive $16,600at the end of each of the next19years and a $25,600lump sum payment in the20th year.Williamcan invest money at a6% rate.

(a)Calculate the present value of the two options.(For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

present value option 1_______

present value option 2________

(b) If William could invest money at 9%, calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

present value option 1_______

present value option 2________