Finance

4. You and 11 coworkers just won $8 million ($666,666.67 each) from the state lottery. Assuming you each receive your share over 17 years and that the state lottery earns a 5 percent return on its funds, what is the present value of your prize before taxes if you request the 'up-front cash' option? Click on the table icon to view the annuity table ! The present value of your prize before taxes if you request the 'up-front cash' option is $ (Round your answer to the nearest dollar.) 1: Data Table n 1% 2% 3% 4% 7% 8% 9% 10% 0.909 1 0.990 0.980 0.971 1.913 0.926 1.783 0.917 1.759 2 0.935 1.808 2.624 1.970 1.942 2.884 1.736 3 2.941 2.829 2.531 2.487 4 5 3.902 4.853 5.795 6.728) 7.652) 3.808 4.713 5.601 6.472 7.325 6 3.717 4.580 5.417 6.230 7.020 3.387 4.100 4.767 2.577 3.312 3.993 4.623 5.206 5.747 7 5.389 5.971 8 9 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.786 8.162 8.983 10 6.515 7.024 7.499 7.943 6.247 6.710 7.139 7.536 11 Present Value of an Annuity of $1 (PVIFA) 5% 6% 0.962 0.952 0.943 1.886 1.859 1.833 2.775 2.723 2.673 3.630 3.546 3.465 4.452 4.329 4.212 5.242 5.076 4.917 6.002 5.786 5.582 6.733 6.463 6.210 7.435 7.108 6.802 8.111 7.722 7.360 8.760 8.306 7.887 9.385 8.863 8.384 9.986 9.394 8.853 10.563 9.899 9.295 11.118 10.380 9.712 11.652 10.838 10.106 12.166 11.274 10.477 12.659 11.690 10.828 13.134 12.085 11.158 13.590 12.462 11.470 14.029 12.821 11.764 14.451 13.163 12.042 14.857 13.489 12.303 15.247 13.799 12.550 9.787 10.575 12 8.566 9.471 10.368 11.255 12.134 13.004 13.865 14.718 15.562 16.398 8.530 9.253 9.954 10.635 11.296 11.938 3.240 3.890 4.486 5.033 5.535 5.995 6.418 6.805 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129 13 8.358 8.745 7.904 8.244 14 11.348 12.106 12.849 13.578 15 9.108 9.447 7.103 7.367) 7.606 7.824 8.022 8.2011 8.559 8.851 9.122 9.372 16 17 9.763 18 10.059 14.292 14.992 15.678 16.351 19 12.561 13.166 13.754 14.324 14.877 15.415 15.937 9.604 8.365 8.514 20 9.818 21 17.011 10.017 17.226 18.046 18.857 19.660 20.456 21.243 8.649 9.292 9.442 22 17.658 10.201 8.772 10.336 10.594 10.836 11.061 11.272 11.469 11.654 12.409 23 18.292 16.444 16.936 9.580 9.707 8.883 8.985 24 18.914 25 22.023 19.523 15.622 9.823 9.077 17.413 19.600 14.094 15.372 12.783 13.765 10.371 10.529) 10.675 11.258 11.925 12.233 30 25.808 22.396 17.292 10.274 9.427 40 32.835 27.355 23.115 17.159 15.046 13.332 10.757 9.779 19.793 21.482 50 39.196 31.424 25.730 18.256 15.762 13.801 10.962 9.915