Bill Jones has just won the state lottery and has the following three payout options forafter-tax prizemoney:

1.$170,000 per year at the end of each of the next six years

2.$312,000 (lumpsum) now

3.$508,000 (lumpsum) six years from now

The annual discount rate is9%. Compute the present value of the first option. (Round your answer to the nearest wholedollar.)

Present value of an ordinary annuity of$1:

8%

9%

10%

1

0.926

0.917

0.909

2

1.783

1.759

1.736

3

2.577

2.531

2.487

4

3.312

3.240

3.170

5

3.993

3.890

3.791

6

4.623

4.486

4.355

7

5.206

5.033

4.868

Present value of$1:

8%

9%

10%

1

0.926

0.917

0.909

2

0.857

0.842

0.826

3

0.794

0.772

0.751

4

0.735

0.708

0.683

5

0.681

0.650

0.621

6

0.630

0.596

0.564

7

0.583

0.547

0.513

A.

$850,000

B.

$762,620

C.

$482,000

D.

$457,251