E11 6 Comparing Options Using Present Valuc Concepts [LO 11-S1] ARer 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 $38 million. You have three options (a) Receive $1.9 million per year for the next 20 years b) Have 512 5 mlion today (c) Have $2 5 million today and receive $1,600,000 for each of the next 20 years Your financial advwiser tells you that it is reasonable to expect to earn 12 percent on Required: 1. Calculate the present value of each option. (Future Value of $1, Pr tables provided. Enter your answers in dollars, not in millions) abe of St, Eiture Value Anngity ofst, Present Value Annuity of S1) (Use appropriate factorts) from the Option A Option B Option c 2 Determine which option you prefer Option B O option A O Option C