Chris Long has just learned he has won a $510,000 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Chris takes all the money today, the state and federal governments will deduct taxes at a rate of 47% immediately. (2) Alternatively, the lottery offers Chris a payout of 20 equal payments of $37,800 with the first payment occurring when Chris turns in the winning ticket. Chris will be taxed on each of these payments at a rate of 25%. Click here to view factor tables Compute the present value of the cash flows for lump sum payout. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Assuming Chris can earn an 8% rate of return (compounded annually) on any money invested during this period, compute the present value of the cash flows for annuity payout.