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 $33 million. You have three options. (a) Receive $1.65 million per year for the next 20 years. (b) Have $11.25 million today. (c) Have $3 million today and receive $1,350,000 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 $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 Optionc 2. Determine which option you prefer. Option A Option B Option C Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the alternatives. Purchasing a new vehicle will cost $32,000, and Harold expects to spend about $1,050 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $12,700. Alternatively, Harold could lease the same vehicle for five years at a cost of $4,160 per year, including maintenance. Assume a discount rate of 12 percent. Required: 1. Calculate the net present value of Harold's options. (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. Negative amounts should be indicated by a minus sign. Round your final answers to 2 decimal places. Do not round intermediate calculations.) NPV Purchase Option Lease Option 2. Advise Harold about which option he should choose. Lease Option O Purchase Option