Gloria Ammon has just won the state lottery and has the following three payout options for

aftertax

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:

	8%	9%	10%
1	0.926	0.917	0.909
2	0.857	0.842	0.826
3	0.794	0.772	0.751
4	0.735	0.708	0.683
5	0.681	0.650	0.621
6	0.630	0.596	0.564
7	0.583	0.547	0.513