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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. $170,000 per year
Felice Lucas has just won the state lottery and has the following three payout options for after - tax prize money: 1. $170,000 per year at the end of each of the next six years 2. $312,000 (lump sum) now 3. $520,000 (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 do Precent val of an nrdinar/ ann lit of $1. A. $762,620 B. $850,000 C. $468,052 D. $482,000
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