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:

a$.$ Recelve $$1\mathrm{.}05$ million per year for the next $20$ years.

b$.$ Have $$8\mathrm{.}25$ million today.

c$.$ Have $$2\mathrm{.}25$ million today and receive $$750,000$ 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:

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.)$

Determine which option you prefer.

Complete this question by entering your answers in the tabs below.

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 $ $1.)$

Note: Use approprlate factor$($s$)$ from the tables provided. Round your final answer to the nearest whole dollar. Enter your

answers in dollars, not in millions.