Over the last ten years, the S&P 500 has returned 13.6%. The settlement paperwork is scheduled to be signed on December 31, 2020. Your client is a 38-year old female. After consulting with a professional actuary you have determined that she should expect to live for 44 years from now. Calculate the present value calculations of each choice, explain your work and all assumptions made:

a) $55 million to be paid at settlement AND $15 million per year on January 1 of each year for 10 years (beginning January 1, 2022).

b) $14 million per year on January 1 forever.

c) $120 million to be paid on January 1, 2021.