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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 $30 million. You have three options: a. Recelve $1.5 mililion per year for the next 20 years. b. Have $10.5 million today. c. Have $2.25 million today and receive $1,200,000 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 51.) 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 Annulty of $1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables provided. Round your final answer to the thearest whole dollar. Enter your answers in doltars, not in mililions. Annuity of \$1.) 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(5) from the tables provided. Round your final answer to the nearest whole dollar. Enter your answers in dollars, not in milions. 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 Annulty of $1, Present Value Annulty 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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