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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 $37 million. You have three options. a. Receive $1.85 million per year for the next 20 years. b. Have $12.25 million today. c. Have $2.25 million today and recelve $1,550,000 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, Euture Value Annuify of \$1. Present Value Annility of si.) 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 appropriote factor(s) from the tables provided, Round your final ariswer to the nearest whole dollar. Enter your answers in dollars, hot in mitions. 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 $37 million. You have three options: a. Recelve $1.85 milion per year for the next 20 years. b. Have $12.25 million today. c. Have $2.25 million today and receive $1,550,000 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. (Euture Value of S1. Present Value of S1. Evture Value AnnuifxofS1. Present Value Annuityof $ is 2. Determine which option you prefer. Complete this question by entering your answers in the tabs below. Determine which option you prefer. CABLE 11.1A Future Value of $1 TABLE 11.2A Present Value of $1 TABLE 11.3A Future Value of an Annuity of \$1 CABLE 11.4A Present Value of Annuity of $1

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