Calculate all three options

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E12-27A (similar to) Congratulations! You've won a state lotto! The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) I Requirement Assuming that you can earn 8% on your funds, which option would you prefer? (Round your answers to the nearest whole dollar) Calculate the present value for each payout. Option #1 Option #1: $12,500,000 five years from now Option #2: $2,250,000 at the end of each year for the next six years Option #3: $11,000,000 three years from now Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0877 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 270 227 0.191 0.162 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0257 0208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0577 0.505 0.442 0340 0.263 0.205 0.160 0.125 0.099 0078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.0840065 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 Period 30 0.742 0.552 0.412 03080231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0005 0.003 0.001 0.001 1% 6% Present Value of Annuity of $1 Periods 2% 3% 4% 5% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1859 1833 1.783 1736 1.690 1647 1.605 1566 1.528 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2.577 2487 2.402 2322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3,312 3.170 3.037 2.914 2798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.8893.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 55825.206 4.8684564 4288 4.039 3.812 3.605 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.0783.837 Period 9 8.566 8.162 7.786 7.435 7 108 6.802 6 247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.1117.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7 887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11 255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.1945.6605.1974793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7 103 6.424 5.842 5.3424.910 4.533 Period 14 13.004 12.106 11.296 10.563 98999295 8.244 7367 6.6286.0025.468 5.008 4611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.9295.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.8736 097 5.467 4.948 Period 30 25.808 22 396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 Period 40 32 835 27 355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 5548 4.997 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 1% 1.010 1.020 1.030 1.041 1.051 1,062 1.072 1,083 1.094 1.105 Future Value of $1 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.020 1030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1200 1.040 1.061 1.082 1.103 1124 1.166 1210 1.254 1.300 1 346 1.392 1.440 1.061 1.093 1.125 1.158 1.191 1260 1.331 1.405 1.482 1.561 1 643 1.728 1.082 1.126 1.170 1.216 1262 1.360 1.464 1.574 1689 1.811 1.939 2074 1.104 1.159 1217 1.276 1338 1.469 1611 1.762 1.925 2.100 2.288 2488 1.126 1.194 1265 1340 1419 1,5871772 1.974 2195 2436 2.700 2.986 1.149 1.230 1316 1.407 1504 1.714 1949 2211 2502 2826 3.185 3.583 1.1721.267 1369 1.477 1594 1.851 2144 2.476 2.853 3278 3.759 4.300 1.195 1305 1.423 1,551 1689 1.999 2358 2773 3.252 3.803 4.435 5.160 1219 1344 1.480 1.629 1791 2.159 2.594 3.106 3.707 4411 5.234 6.192 1243 1.384 1539 1.7101898 2.3322853 3.479 4226 5.117 6.176 7.430 1.268 1.426 1601 1.796 2012 2.5183.138 3.896 4.818 5.936 7288 8 916 1294 1.469 1665 1 886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1319 1.513 1732 1.980 2261 2.937 3.797 4.887 6.261 7988 10.147 12839 1.346 1.558 1801 2.079 2397 3.172 4.177 5.474 7.138 9.266 11974 15.407 1486 1 806 2191 2653 3207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 1.641 2094 2666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95 396 1.811 2427 3.243 4322 5743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 2.208 3.262 4801 7.040 10.286 21.725 45 259 93.051 188,884 378.721 750.378 1.469772 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 Period 20 Period 25 Period 30 Period 40 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2020 2030 2040 2.050 2.060 2080 2.100 2.120 2.140 2. 160 2. 180 2200 Period 3 3.0303.060 3.091 3.122 3.153 3.184 3.246 3310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4246 4.310 4.375 4506 4.641 4.779 4.921 5.066 5215 5.368 Period 5 5.101 5.204 5.309 5.416 5.5265.63758676.105 6.353 6610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7336 7716 8.115 8.536 8.977 9.442 9.930 Period 7 7214 7434 7.6627 898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12142 12916 Period 8 8.286 8583 8.892 92149.549 9.897 10.637 11.436 12.300 13233 14.240 15.327 16499 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17519 19.086 20.799 Period 10 10.462 10.950 11.464 12.006 12578 13.181 14.487 15.937 17 549 19.337 21.321 23,521 25.959 Period 11 11.567 12.169 12808 13.486 14 207 14.972 16,645 18.531 20.655 23.045 25.733 28.755 32.150 Period 12 12 683 13.412 14.192 15 026 15.917 16.870 18.977 21.384 24.133 27271 30.850 34.931 39.581 Period 13 13 809 14.680 15618 16.627 17 713 18.882 21.495 24.523 28.029 32089 36.786 42219 48.497 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24215 27.975 32 393 37581 43.672 50818 59.196 Period 15 16.097 17 293 18.599 20.024 21.579 23 276 27.152 31.772 37.280 43.842 51,660 60.965 72.035 Period 20 22019 24 297 26.870 29.778 33 066 36.786 45.762 57.275 72.052 91,025 115 380 146.628 186.688 Period 25 28.243 32.030 36.459 41.646 47.727 54 865 73.106 98 347 133 334 181.871 249 214 342603 471.981 Period 30 34.785 40.568 47 575 56,085 66.439 79.058 113.283 164 494 241.333 356.787 530312 790.948 1.181 882 Period 40 48.886 60.402 75.401 95 026 120.800 154.762 259.057 442 593 767 091 1,342 025 2,360.757 4,163 213 7 343.858