Congratulations! You've won a state? lotto! The state lottery offers you the following? (after-tax) payout? options:

Option? #1	$ 12,000,000 five years from now
Option? #2:	$2,300,000 at the end of each year for the next five years
Option? #3:	$11,000,000 three years from now

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 #2: Option #3:

Periods 1%) 2%) 3%4%| 5%) 6%) 8% 10 12 14 16 18 20 0.910.910.90.910.910.910.910.910.80.810.80.810.8 90 80 71 62 52 43 26 09 93 77 62 47 33 0.91 0.91 0.91 0.91 0.91 0.81 0.810.81 0.710.7|07| 0.710.6 80 61 43 25 0790 57 26 97 69 43 18 94 0.90.90.90.80.80.8 0.7 0.7 0.7 0.60.6 0.6 0.5 71 | 42 | 1 5 | 89 | 64 | 40 | 94 | 51 | 1 2 | 75 | 41 | 09 | 79 0.910.910.80.810.810.7 0.7 0.610.60.50.50.510.4 61 24 88 55 23 92 35 83 36 92 52 16 82 0.910.910.80.810.70.70.6 0.610.50.510.4 0.410.4 5106 63 22 84 47 81 21 67 19 76 37 02 0.9 0.80.80.7 0.7 0.7 0.610.50.5 0.4 0.4 0.3 0.3 42 | 88 | 37 | 90 | 46 | 05 | 30 | 64 | 07 | 56 | 10 | 70 | 35 0.9 0.80.80.7 0.7 0.6 0.50.50.4 0.4 0.3 0.3 0.2 33 | 71 | 1 3 | 60 | | 1 | 65 | 83 | 1 3 | 52 | 00 | 54 | 14 | 79 0.910.810.7 ?0.610.6 0.5 0.4 0.4 0 0.3 0.2 0.2 23 53 89 31 77 27 40 67 04 51 05 66 33 0.910.807 ?0.610.5 0.5 0.4 0.3 0.3 0.2 0.2 0.1 14 37 66 03 4592 00 24 61 08 63 25 94 0.9 0.80.7 0.60.60.5 0.4 0.3 0.3 0.2 0.2 0.10.1 05 20 44 76 14 58 63 86 22 70 27 91 62 10 0.80.810.7 0.610.50.50.4 0.3 0.20.2 0.110.110.1 96 | 04 | 22 | 50 | 85 | 27 | 29 | 50 | 87 | 37 | 95 | 62 | 35 0.80.7 0.7 0.6 0.50.4 0.3 0.3 0.2 0.2 0.10.10.1 8788 01 25 57 97 97 19 57 08 68 37 12 0.80.70.60.60.50.4 0.30.2 0.2 0.10.10.10.0 79 73 81 01 30 69 68 90 29 82 45 16 93 0.810.710.60.510.50.40.3 0.210.20.1 0.10.010.0 70 58 61 77 05 42 40 63 05 60 25 99 78 0.810.710.60.510.410.40.3 0.210.10.1 0.10.010.0 61 43 42 55 81 17 15 39 83 40 08 84 65 12 13 15 20 25 30 40 0.80.60.50.4 0.30.3 0.2 0.1 0.1 0.00.00.0 0.0 20 73 54 56 77 12 15 49 04 73 51 37 26 0.70.6 0.40.3 0.210.21 0.10.010.0 0.010.0l 0.010.0 80 10 78 75 95 33 46 92 59 38 24 16 10 0.710.50.40.3 0.210.10.010.010.0 0.010.0l 0.010.0 42 | 52| 12 | 081 31 741 991 5? 33 | 201 12| 07| 04 0.60.4 0.30.2 0.10.0 0.00.00.0 0.00.00.0 0.0 72 53 07 08 42 97 46 22 11 05 03 01101