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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

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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 $21 million. You have three options: o. Receive $1.05 million per year for the next 20 years. b. Have $8.25 mililion today. c. Have $2.25 million today and recelve $750.000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to eam 13 percent on investments Required: 1. Calculate the ptesent value of each option. (Euture Value of \$1. Present Value of \$1. Euture Value Annultyof S1. Prossant Valuef Annulfy 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. (F uture 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 lital answer to the nearest whole dollar. Enter your arswers in collars, not in millions. lequired: 1. Calculate the present value of each option. (Euture Value of $1. Present Value of S1. Eufure Value Annuily of \$1, Present Value Annuly 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.) Notes. Use appropriate factor(s) from the tables provided. Round your tinal answer to the nearest whole dollar, Enter your answers in dollarse not in millions. 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, Euture Value of $1. Present Value of $1. Euture Value Annuityof $1. Present Value Annuity of 51.) 2. Determine which option you prefer. Complete this question by entering your answers in the tabs below. Determine which option you prefer

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