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 $33 million. You have three options: Receive $1.65 million per year for the next 20 years. Have $11.25 million today. Have $3 million today and receive $1,350,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.

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 \$33 million. You have three options: a. Receive $1.65 million per year for the next 20 years. b. Have $11.25 million today. c. Have $3 million today and receive $1,350,000 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.) 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 $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Note: 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