Option #1: $14,000,000 after five years Option #2: $2,200,000 per year for five years Option #3: $10,000,000 after three years Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.962 0.952 0.907 0.990 0.980 0.971 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1 0.925 0,890 0.857 0.842 0.826 0.769 0.756 0.743 0.718 0.980 0.961 0.943 0.873 0.797 0.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.579 0.609 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.456 0.432 0.410 0.370 0.335 0.933 0.760 0.711 0.665 0.623 0.547 0.513 0.452 0.400 0.279 0.871 0.813 0.583 0.376 0.354 0.314 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.327 0.305 0.266 0.233 0.351 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.270 0.247 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.287 0.237 0.215 0.195 0.162 0.135 12 0.887 0.788 0.625 0.497 0.444 0.356 0.319 0.257 0.208 0.187 0.701 0.557 0.397 0.168 0.137 0.112 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 0.870 0.263 14 0.758 0.661 0.577 0.505 0.442 0.388 0.340 0.299 0.205 0.160 0.141 0.125 0.099 0.078 15 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 16 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.962 0.952 0.990 0.980 0.971 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1 1.970 1.942 1.886 1.859 1.833 1.808 1.783 1.759 1.736 1.690 1.647 1.626 1.528 1.913 1.605 1.566 2.829 3 2.941 2.884 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2.402 2.322 2.283 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 4.853 4.713 4.580 4.452 4.329 4.212 4,100 3.993 3.890 3.791 3.605 3.433 3.352 2.991 5 3.274 3.127 6 5.795 5.242 4.917 3.889 3.326 5.601 5.417 5.076 4.767 4.623 4.486 4.355 4.111 3.784 3.685 3.498 6.728 6.472 5.786 5.582 4.868 4.564 4.288 6.230 6.002 5.389 5.206 5.033 4.160 4.039 3.812 3.605 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 9 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.418 6.145 5.650 5.216 5.019 4.833 4.192 6.710 4.494 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 11.255 10.575 8.863 12 9.385 11.348 10.635 9.986 12.106 11.296 10.563 9.954 8.384 7.943 7.536 7.161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 13 12.134 9.394 8.853 8.358 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533 14 7.367 4.611 13.004 9.899 9.295 8.745 8.244 7.786 6.628 6.002 5.724 5.468 5.008 11.938 11.118 10.380 13.865 12.849 8.061 7.606 5.847 4.675 15 9.712 9.108 8.559 6.811 6.142 5.575 5.092 14.718 13.57812.56111.652 10.83810.106 4.730 16 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.020 1.010 1.030 1.040 1.050 1.060 1.070 1.080 1.090 1.100 1.120 1.140 1.150 1 1.020 1,040 1.061 1.082 1.103 1.124 1.145 1.166 1.188 1.210 1.254 1.300 1.323 3 1.030 1.061 1.093 1.125 1.158 1.191 1.225 1.260 1.295 1.331 1.405 1.482 1.521 1.041 1.082 1.126 1.170 1.216 1.262 1.311 1.360 1.412 1.464 1.574 1.689 1.749 4 5 1.051 1.104 1.159 1.217 1.276 1.338 1.403 1.469 1.539 1.611 1.762 1.925 2.011 6 1.062 1.126 1.194 1.265 1.340 1.419 1.501 1.587 1.677 1.772 1.974 2.195 2.313 1.149 1.230 1.316 1.504 1.606 1.828 1.949 2.502 7 1.072 1.407 1.714 2.211 2.660 1.369 1.083 1.172 1.267 1.477 1.594 1.718 1.851 1.993 2.144 2.476 2.853 3.059 9 1.094 1.195 1.305 1.423 1.551 1.689 1.838 1.999 2.172 2.358 2.773 3.252 3.518 1.344 4.046 10 1.105 1.219 1.480 1.629 1.791 1.967 2.159 2.367 2.594 3.106 3.707 11 1.116 1.243 1.384 1.539 1.710 1.898 2.105 2.332 2.580 2.853 3.479 4.226 4.652 1.796 1.268 2.813 3.896 12 1.127 1.426 1.601 2.012 2.252 2.518 3.138 4.818 5.350 1.665 13 1.138 1.294 1.469 1.886 2.133 2.410 2.720 3.066 3.452 4.363 5.492 6.153 14 1.149 1.319 1.513 1.732 2.579 3.342 6.261 7.076 1.980 2.261 2.937 3.798 4.887 15 1.346 1.558 1.801 2.397 2.759 3.172 3.642 7.138 8.137 1.161 2.079 4.177 5.474 16 1.173 1.373 1.605 1.873 2.183 2.540 2.952 3.426 3.970 4.595 6.130 8.137 9.358 Future Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 1.000 1.000 1.000 1.000 1.000 1.000 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2.080 2.090 2 2.010 2.020 2.030 2.040 2.050 2.060 2.070 2.100 2.120 2.140 2.150 3.030 3,060 3.091 3.122 3.153 3.215 3.246 3.278 3.310 3.374 3.440 3.473 3 3.184 4 4.184 4.246 4.310 4.440 4.506 4.573 4.921 4.993 4.060 4.122 4.375 4.641 4.779 5.309 5.416 5.526 5.751 5.867 5.985 6.742 5.101 5.204 5.637 6.105 6.353 6.610 6.802 7.716 8.115 6 6.152 6.308 6.975 7.153 8.754 6.468 6.633 7.336 7.523 8.536 7 7.214 7.434 7.662 7.898 8.142 8.394 8.654 8.923 9.200 9.487 10.09 10.73 11.07 8.286 10.260 11.44 12.30 13.73 8 8.583 8.892 9.214 9.549 9.897 10.64 11.03 13.23 9 9.369 9.755 10.16 10.58 11.03 11.49 11.98 12.49 13.02 13.58 14.78 16.09 16.79 12.58 10 10.95 13.18 14.49 15.94 17.55 19.34 20.30 10.46 11.46 12.01 13.82 15.19 11 11.57 12.17 12.81 13.49 14.21 14.97 15.78 16.65 17.56 18.53 20.65 23.04 24.35 12 13.41 14.19 15.03 15.92 16.87 17.89 21.38 24.13 12.68 18.98 20.14 27.27 29.00 13 34.35 13.81 14.68 15.62 16.63 17.71 18.88 20.14 21.50 22.95 24.52 28.03 32.09 14 14.95 15.97 17.09 18.29 19.60 21.02 22.55 24.21 26.02 27.98 32.39 37.58 40.50 29.36 31.77 15 16.10 17.29 18.60 20.02 21.58 23.28 25.13 27.15 37.28 43.84 47.58 16 17.26 18.64 20.16 21.82 23.66 25.67 27.89 30.32 33.00 35.95 42.75 50.98 55.72 Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options: E(Click the icon to view the payout options.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) EXClick the icon to view Future Value of Ordinary Annuity of $1 table.) Assuming you can earn 8% on your funds, which option would you prefer? The present value of the payout is: (Round your answers to the nearest whole dollar.) Option #1: Option #2: Option #3: (Enter your answer as a numeral-e.g., 1.) Payout Option # has the highest present value using the 8% discount rate. Therefore, it appears to be the most favorable option