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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
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.) A. $76,667 B. $254,000 C. $298,000 D. $79,467
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