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Edward Hughes has just won the state lottery and has the following three payout options for after-tax prize money 1. $160,000 per year at the
Edward Hughes has just won the state lottery and has the following three payout options for after-tax prize money 1. $160,000 per year at the end of each of the next six years 2. $300,000 (lump sum) now 3. $502,000 (lump sum) six years from now The annual discount rate is 9%. Compute the present value of the second option (Round to nearest whole dollar) Present value of 51 8% 9% 10% 0.926 0.917 0.909 2 0.857 0.842 0.826 3 0.794 0.772 0.751 4 0.735 0.708 0.683 1 O A $662,000 OB. $100.400 OC. $300,000 OD $401,600
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