Option #1: $14,500,000 five years from now Option #2: $2,150,000 at the end of each year for the next six years Option #3: $13,000,000 three years from now Present Value of $1 Periods 1 2 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 0.962 0.925 0.889 0.855 0.822 6% 0.943 0.890 0.840 0.792 0.747 8% 0.926 0.857 0.794 0.735 0.681 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 16% 0.862 0.743 0.641 0.552 0.476 5% 0.952 0.907 0.864 0.823 0.784 0.746 0.711 0.677 0.645 0.614 18% 0.847 0.718 0.609 0.516 0.437 14% 0.877 0.769 0.675 0.592 0.519 0.456 0.400 0.351 0.308 0.270 20% 0.833 0.694 0.579 0.482 0.402 4 on 6 7 8 9 10 0.942 0.933 0.923 0.914 0.905 0.837 0.813 0.789 0.766 0.744 0.888 0.871 0.853 0.837 0.820 0.790 0.760 0.731 0.703 0.676 0.705 0.665 0.627 0.592 0.558 0.370 0.314 0.266 0.630 0.583 0.540 0.500 0.463 0.564 0.513 0.467 0.424 0.386 0.410 0.354 0.305 0.263 0.227 0.335 0.279 0.233 0.194 0.162 0.225 0.191 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0229 0.205 0.183 11 12 13 14 15 0.896 0.887 0.879 0.870 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.557 0.530 0.505 0.481 0.527 0.497 0.469 0.442 0.417 0.429 0.397 0.368 0.340 0.350 0.319 0.290 0.263 0.239 0.237 0.208 0.182 0.160 0.140 0.195 0.168 0.145 0.125 0.108 0.162 0.137 0.116 0.099 0.084 0.135 0.112 0.093 0.078 0.065 0.315 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 Periods 1 1% 0.990 1.970 2.941 3.902 4.853 2 3 4 5 2% 0.980 1.942 2.884 3.808 4.713 3% 0.971 1.913 2.829 3.717 4.580 4% 0.962 1.886 2.775 3.630 4.452 Present Value of Annuity of $1 5% 6% 8% 10% 0.952 0.943 0.926 0.909 1.859 1.833 1.783 1.736 2.723 2.673 2.577 2487 3.546 3.465 3.312 3.170 4.329 4.212 3.993 3.791 12% 0.893 1.690 2.402 3.037 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 6 7 8 9 10 4.623 5.206 5.747 6.247 6.710 4.355 4.868 5.335 5.759 6.145 4.111 4.564 4.968 5.328 5.650 3.889 4.288 4.639 4.946 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 5.795 5.601 5.417 5.242 5.076 4.917 6.728 6.472 6.230 6.002 5.786 5.582 7.652 7.325 7.020 6.733 6.463 6.210 8.566 8.162 7.786 7.435 7.108 6.802 9.471 8.983 8.530 8.111 7.722 7.360 10.368 9.787 9.253 8.760 8.306 7.887 11.255 10.575 9.954 9.385 8.863 8.384 12.134 11.348 10.635 9.986 9.394 8.853 13.004 12.106 11.296 10.563 9.899 9.295 13.865 12.849 11.938 11.118 10.380 9.712 18.046 16.351 14.877 13.590 12.462 11.470 11 12 13 14 15 fel 7.139 7.536 7.904 8.244 8.559 6.495 6.814 7.103 7.367 7.606 5.938 6.194 6.424 6.628 6.811 5.453 5.660 5.842 6.002 6.142 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 20 9.818 8.514 7.469 6.623 5.929 5.353 Future Value of $1 Periods 2 3 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 3% 1.030 1.061 1.093 1.126 1.159 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1482 1.689 1.925 4 5 16% 1.160 1.346 1.561 1.811 2.100 2.436 2.826 3.278 3.803 4,411 18% 1.180 1.392 1.643 1.939 2.288 2.700 3.185 3.759 4.435 5.234 6 7 1.062 1.072 1.083 1,094 1.105 8 9 10 1.265 1.316 1.369 1.423 1.480 1.974 2211 2.476 2.773 3.106 1.194 1.230 1.267 1.305 1.344 1.384 1.426 1.469 1.513 1.558 11 12 13 14 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1.319 1.346 20% 1.200 1.440 1.728 2.074 2.488 2.986 3.583 4.300 5.160 6.192 7430 8.916 10.699 12.839 15.407 1.340 1.407 1.477 1551 1.629 1.710 1.796 1.886 1.980 2.079 2653 1.539 1.601 1.665 1.732 1.801 2.191 1.419 1.504 1.594 1.689 1.791 1.89B 2.012 2.133 2.261 2.397 3.207 1.587 1.714 1.851 1.999 2.159 2.332 2.518 2.720 2.937 3.172 4.661 1.772 1.949 2.144 2.358 2.594 2853 3.138 3.452 3.797 4.177 6.727 2.195 2.502 2.853 3.252 3.707 4.226 4.818 5.492 6.261 7.138 13.743 3.479 3.896 4.363 4.887 5474 9.646 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 20 1.220 1436 1.806 19.461 27.393 39.338 Periods 1 2 1% 1.000 2.010 3030 4.060 5.101 2% 1.000 2.020 3,060 4.122 5.204 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5.215 7.154 4 5 6 7 8 6.308 7.434 8.583 9.755 10.950 3% 1.000 2030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 11.464 12.808 14.192 15.618 17.086 18.599 26.870 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 12.006 13.486 15.026 16.627 18.282 20.024 29.778 Future Value of Annuity of $1 5% 6% 8% 10% 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 3.153 3.184 3.246 3.310 4.310 4.375 4.506 4.641 5.526 5.637 5.867 6.105 6.802 6.975 7.336 7.716 8.142 8.394 8.923 9.487 9.549 9.897 10.637 11.436 11.027 11.491 12488 13.579 12.578 13.181 14.487 15.937 14.207 14.972 16.645 18.531 15.917 16.870 18.977 21,384 17.713 18.882 21.495 24.523 19.599 21.015 24 215 27.975 21.579 23.276 27.152 31.772 33,066 36.786 45.762 57.275 20% 1.000 2.200 3.640 5.388 7.442 9.930 12.916 16.499 20.799 25.959 12% 1.000 2.120 3.374 4.779 6.353 8.115 10.089 12.300 14.776 17.549 20.655 24.133 28.029 32.393 37.280 72.052 14% 1.000 2140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.337 23.045 27271 32089 37.581 43.842 91.025 6.152 7214 8.286 9.369 10.462 11.567 12.683 13.809 14.947 16.097 22.019 8.977 11.414 14.240 17.519 21.321 9 10 9.442 12.142 15.327 19.086 23.521 28.755 34.931 42.219 50.818 60.965 11 12 13 14 15 12.169 13.412 14 680 15 974 17 293 24.297 25.733 30.850 38.786 43.672 51.660 115.380 32.150 39.581 48.497 59.196 72.035 20 146.628 186.688 Congratulations! You've won a state lottol The state lottery offers you the following (after-tax) payout options: (Click the icon to view the payout options.) (Click the icon to view the present value factor table.) (Click the icon to view the present value annuity factor table.) (Click the icon to view the future value factor table.) (Click the icon to view the future value annuity factor table.) Requirement Assuming that you can earn 10% on your funds, which option would you prefer? (Round your answers to the nearest whole dollar.) Calculate the present value for each payout. Option #1: Option #2: Option #3: The option you would you prefer is the one that has the present value. Therefore, would be the preferred payout option