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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. $158,000 per year at the
Felice Lucas has just won the state lottery and has the following three payout options for after-tax prize money 1. $158,000 per year at the end of each of the next six years 2. $308,000 (lump sum) now 3. $516,000 (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% 0.926 1.783 2.577 3.312 3.993 4.623 5.206 9% 0.917 1.759 2.531 3.240 3.890 4.486 5.033 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 2 4 6 Present value of $1 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 9% 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 2 4 6 7 OA. $790,000 O B. $466,000 O C. $464,452 O D. $708,788
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