After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $39 million. You have three options.

(a)	Receive $1.95 million per year for the next 20 years.
(b)	Have $12.75 million today.
(c)	Have $2.75 million today and receive $1,650,000 for each of the next 20 years.

Your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.

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. Round your final answer to the nearest whole dollar. Enter your answers in dollars, not in millions.)

option a

option b

option c