Jared Electronics Company wins the state award and has the following three payout options for after-tax prize money: 1. $150,000 per year at the end of each of the next six years 2. $300,000 (lump sum) now 3. $500,000 (lump sum) six years from now The required rate of return is 9%. What is the present value if the second option is chosen? (Round to nearest whole dollar.)

1. 		$400,000
   		$300,000
   		$100,000
   		$650,000

Present value of $1 table:

	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	0.65	0.621
6	0.63	0.596	0.564
7	0.583	0.547	0.513