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 $20 million. You have three options: 136 points eBook (a) Receive $1 million per year for the next 20 years. (b) Have 30 million today. le) Have 12 million today and recalve $700,000 for each of the most 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. (Future Value of $1. Present Value of St. Future Value Annuity of $1. Present Value Annulty of S1) (Use appropriate factor(s) from the tables provided. Enter your answers in dollars but not in millions.) Hint Print References Present Value Option A Option B Optionc 2. Determine which option you prefer Option A O Option Option C Check my work mode : This shows what is correct or Incorrect for the work you have completed so far. It does not indicate com Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered Information about each option but is not sure how to compare the alternatives. Purchasing a new vehicle will cost $26,500, and Harold expects to spend about $500 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $10,500. Alternatively Harold could lease the same vehicle for five years at a cost of $3,480 per year, including maintenance. Assume a discount rate of 10 percent Required: 1. Calculate the net present value of Harold's options. (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. Negative amounts should be indicated by a minus sign. Round your final answers to 2 decimal places.) Answer is not complete. NPV Purchase Option Lease Option 2. Advise Harold about which option he should choose Purchase Option Lease Option MacBook Air ODO > 80 FS add a 03 FB F2 F * # 3 $ 4 % 5 a> & 7 8 9 8 6 0 9 N W E R T T Y U 1 O