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Felice Lucas has just won the state lottery and has the following three payout options for after - tax prize money: 1. $160,000 per year
Felice Lucas 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. $314,000 (lump sum) now 3. $510,000 (lump sum) six years from now The annual discount rate is 9%. Compute the present value of the first option. (Round your answer to the nearest whole dollar.) Present value of an ordinary annuity of $1: 8% 9% 10% 0.926 0.917 0.909 1.783 1.759 1.736 2.577 2.531 2.487 3.312 3.240 3.170 3.993 3.890 3.791 4.623 4.486 4.355 5.206 5.033 4.868 AWN 9% Present value of $1: 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 OWN 0.917 0.842 0.772 0.708 0.650 0.596 0.547 10% 0.909 0.826 0.751 0.683 0.621 0.564 0.513 O A. $800,000 OB. $717,760 OC. $474,000 OD. $459,051
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