After completing a long and successful career as senior vice president for a large bank, you are preparing for retirement. After visiting the human resources office, you have found that you have several retirement options to choose from:

1. An immediate cash payment of $1 million.
2. Payment of $92,000 per year for life.
3. Payment of $82,000 per year for 10 years and then $95,000 per year for life (this option is intended to give you some protection against inflation).

You believe you can earn 8 percent on your investments and your remaining life expectancy is 20 years. Required: 1. 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.) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars but not in millions. Round the final answer to nearest whole dollar.)