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 wth the good news that you are the big winner, having won $31 million. You have three options. (a) Receive $1.55 million per year for the next 20 years. (b) Have $10.75 million today. (c) Have $2.5 million today and receive $1,250,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 14 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. Enter your answers in dollars, not in millions.) Present Value Option A Option B Option C 2. Determine which option you prefer. Option C O Option A OOption B