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Listed below are three lottery payout options. (click the icon to view the lottery payout options.) Rather than compare the payout options at their present
Listed below are three lottery payout options. (click the icon to view the lottery payout options.) Rather than compare the payout options at their present values, compare the payout options at their future value ten years from now. a. Using an 8% interest rate, what is the future value of each payout option? b. Rank your preference of payout options c. Does computing the future value rather than the present value of the options change your preference of payout options? Explain. Data Table the future value annuity factor table.) tepresent value annuity factor table.) Option 1 $975,000 now Option 2: $154,000 at the end of each year for the next ten years Option 3: $1,700,000 ten years from now lar.)
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