Kershaw Bales won the state lottery and was given four choices for receiving her winnings.

1. Receive $500,000 right now.
2. Receive $540,000 in one year.
3. Receive $50,000 at the end of each year for 20 years.
4. Receive $45,000 at the end of each year for 30 years.

Assuming Kershaw can earn interest of eight percent compounded annually, which option should Kershaw choose?

Use Excel or a financial calculator for computation. Round answers to the nearest dollar.

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Present Value Computation Kershaw Bales won the state lottery and was given four choices for receiving her winnings. 1. Receive $500,000 right now. 2. Receive $540,000 in one year. 3. Receive $50,000 at the end of each year for 20 years. 4. Receive $45,000 at the end of each year for 30 years. Assuming Kershaw can earn interest of eight percent compounded annually, which option should Kershaw choose? Use Excel or a financial calculator for computation. Round answers to the nearest dollar. (a) 1. $ (a) 2. $ O 0 (a) 3. $ 0 (a) 4. $ 0 (b) Check