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.) Requirement Assuming that you can earn 10% 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 The option you would you prefer is the one that has the present value. Therefore, would be the preferred payout option Option #1: $16,000,000 four years from now Option #2: $2,000,000 at the end of each year for the next six years Option #3: $12,000,000 three years from now Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 8% 10% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.9090. 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0. 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.794 0.751 0. 0.961 0.924 0.888 0.855 0.823 0.792 0.735 0.6830. 0.951 0.906 0.863 0.822 0.784 0.747 0.747 0.681 0.621 0. Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0. Period 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0. Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0. Period 9 0.914 0.837 0.766 0.703 0.6450.592 0.500 0.424 0. Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0. Period 110.896 0.804 | 0.722 0.650 0.585 0.527 0.429 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 Period 130.879 0.773 0.681 0.601 0.530 0.469 0.368 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.3500 . 0.319 0. 0.290 0. 0.263 0. 0.239 0. Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.146 0.092 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.174 0.099 0.099 0.057 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0. 0. 0. 0. Future Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 1.010 1.020 1.020 1.040 1.030 1.061 1.041 1.082 1.051 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 5% 1.040 1.050 1.082 1.103 1.125 1.158 1.170 1.216 1.217 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.126 1.072 1.149 1.083 1.172 1.094 1.195 1.105 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.243 1.384 1.539 1.1271.268 1.268 1.426 1.601 1.138 1.294 1.469 1.665 1.149 1.319 1.513 1.732 1.161 1.346 1.558 1.801 1.220 1.486 1.806 2.191 1.282 1.641 2.094 2.666 1.348 1.811 2.427 3.243 1.489 2.208 3.262 4.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 Period 20 Period 25 Period 30 Period 40 2.653 3.207 4.661 6.727 3.386 4.292 6.848 10.835 4.322 5.743 10.063 17.449 7.040 10.286 21.725 45.259 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 10% 12% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.609 Period 6 5.795 5.601 5.417 5.2425.0764.917 4.623 4.355 4.111 Period 7 6.728 6.472 6.230 6.230 6.0025.786 5.582 5.206 4.868 4.564 Period 8 7.652 7.325 7.020 7.020 6.733 6.463 6.210 5.747 5.335 4.968 Period 9 8.566 8.1627.786 7.435 7.108 6.802 6.247 5.759 5.328 | Period 10 9.471 8.983 8.530 8.111 8.1117.722 7.360 6.710 6.145 5.650 Period 11 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 Period 12 11.255 10.575 9.9549.3858.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.2958.244 7.3676.628 Period 15 13.865 12.849 11.938 11.11810.380 9.712 8.559 7.6066.811 Period 2018.046 16.351 14.877 13.590 12.462 | 11.470 9.818 8.514 7.469 Period 25 22.023 19.523 17.413 15.622 14.094 | 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.2589.427 8.054 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 | 8.244 Future Value of Annuity of 3% Periods 1% 4% 8% 2% 10% 6% 5% 1.000 1.000 Period 1 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 Period 3 3.030 3.060 3.091 3.122 3.153 3.184 W3.246 3.310 Period 4 4.060 4.122 4.1844.246 4.310 4.375 4.506 4.641 Period 5 5.101 5.204 5.204 5.309 5.416 5.526 5.637 5.867 6:105 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 Period 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 | 13.575 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.931 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 Period 15 | 16.097 17.29318.599 20.024 21.579 23.276 27.152 31.772 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.27 Period 25 28.243 32.030 36.459 41.646 | 47.727 54.865 73.106 98.347 Period 30 34.785 40.568 47.575 56.085 66.43979.058 113.283 164.49 Period 40 48.886 60.402 75.401 95.026 120.800 154.762|259.057 442.59