E$11-6($Algo$)$ Comparing Options Using Present Value Concepts $[$LO $11-$S$1]$

After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well$-$known magazine subscription company. It has arrived with the good news that you are the big winner, having won $$37$ million. You have three options:

Receive $$1\mathrm{.}85$ million per year for the next $20$ years.

Have $$12\mathrm{.}25$ million today.

Have $$2\mathrm{.}25$ million today and receive $$1,550,000$ for each of the next $20$ years.

Your financial adviser tells you that it is reasonable to expect to earn $14$ percent on investments.

Required:

Calculate the present value of each option. $($Future Value of $$1,$Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)$

Note: Use appropriate factor$($s$)$ from the tables provided. Round your final answer to the nearest whole dollar. Enter your answer in dollars, not in millions.