Paul has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $133,000 cash payment today. The second option is to receive $19,500 at the end of each of the next 19 years and a $37,500 lump sum payment in the 20th year. Paul can invest money at a 8% rate. Click here to view the factor table. (a) Calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

		Option 1		Option 2
Present value		$enter a dollar amount		$enter a dollar amount

Which option should Paul choose to receive his winnings?

select an option Option 1Option 2

(b) If Paul could invest money at 11%, calculate the present value of the two options. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.)

		Option 1		Option 2
Present value		$enter a dollar amount		$enter a dollar amount

Which option should he choose?