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John Doe wins the lottery and may pick from the following three choices: Take $750.000 now. Take $1,000,000 ten years from now. Take 590,000 at

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John Doe wins the lottery and may pick from the following three choices: Take $750.000 now. Take $1,000,000 ten years from now. Take 590,000 at the end of this year, and at the end of each following year for ten installments in total Assume that John Doe uses a discount rate of sto evaluate his choices. The selects the third option how much is the present value of that alternative? Present Value of an Annuity of S1 596 616 790 896 996 1096 8 6.463 6.210 5971 5.747 5.535 5.335 9 7.103 6.802 6515 6.247 5995 55759 10 7.722 7.360 7.024 6710 6,418 6.145 5814,000 $900.000 5694,980 5790.000

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