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) 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 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 $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.) Present Value Option A Option B Option C As a result of a slowdown in operations, Tradewind Stores is offering employees who have been terminated a severance package of $109,000 cash paid today: $109,000 to be paid in one year, and an annuity of $35,000 to be paid each year for 5 years. What is the present value of the package assuming an interest rate of 10 percent? (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 the final answer to nearest whole dollar.) Present Value