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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

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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 $35 million. You have three options: a. Recelve $1.75 milion per year for the next 20 years: b. Have $11.75 million today. c. Have $3.5 million today and receive $1,450.000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 12 percent on investments. Required: 1. Calculate the present value of each option. (Euture Value of S1. Present Value of \$1. Euruice Value Annuly. of 51 , Piesent Vaitue Annuity of 51 ) 2. Determine which option you prefer Complete this question by entering your answers in the tabs below. Calculate the present value of each option. (Future Value of S1; Present Value of S1, Future Value Annuity of 51. present Value Annuity of 51.) Calculate the present value of each option. (Future Value of \$1. Present Value of S1, Future Value Annuity of \$1, Present Value Annuity of 51.) Determine which option you prefer. Complete this question by entering your answers in the tabs below. Calculate the present value of each option. (Future Value of $1, Present value of $1, Future Value Annuity of $1. Note: Use appropriate factor(s) from the tables provided. Round your final answer to the nearest whiole dollar. Enter your Present Value Annuity of $1.) ansvers in dollars, not in millions. a. Receive $1.75 million per year for the next 20 years. b. Have $11.75 million today. c. Have $3.5 million today and receive $1.450,000 for each of the next 20 years. Your financial adviser telis you that it is reasonable to expect to earn 12 percent on investments. Required: 1. Calculate the present value of each option. (Future Value of S1. Present Value of S1, Euture Value Annuity of S1. Present Value Annulty of S1.) 2. Determine which option you prefer. Complete this question by entering your answers in the tabs below. Determine which option you prefer

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