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Jason has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $135,000 cash payment

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Jason has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $135,000 cash payment today. The second option is to receive $19,000 at the end of each of the next 19 years and a $27,400 lump sum payment in the 20th year. Jason can invest money at a 10% rate. Click here to view the factor table. (a) Calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Option 1 Option 2 Present value $ Which option should Jason choose to receive his winnings? (b) If Jason could invest money at 13%, calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e g. 58,971) Option 1 Option 2 Present value $ $

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