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Gloria Ammon has just won the state lottery and has the following three payout options for after-tax prize money 1. $50,000 per year at
Gloria Ammon has just won the state lottery and has the following three payout options for after-tax prize money 1. $50,000 per year at the end of each of the next six years 2. $304,000 (lump sum) now 3. $500,000 (lump sum) six years from now The annual discount rate is 9%. Compute the present value of the third option. (Round to nearest whole dollar.) Present value of $1: 1234 8% 9% 10% 0.926 0.917 0.909 0.857 0.842 0.826 0.794 0.772 0.751 0.735 0.708 0.683 OA. $76,667 OB. $79,467 OC. $254,000 OD. $298,000
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