please help with practice problem 4

After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $22 million. You have three options: a. Recelve $1.1 million per year for the next 20 years. b. Have $8.5 million today. c. Have $2.5 mililon today and recelve $800,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 14 percent on Investments. Required: 1. Calculate the present value of each option. (Future Value of $1. Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) 2. Determine which option you prefer. Complete this question by entering your answers in the tabs below. Calculate the present value of each option. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1. Note: Use appropriate factor(S) from the tables provided. Round your final answer to the nearest whole doliar. Enter your answers in dollars, not in mililions. After hearing a knock at your front door, you are surprised to see the Prize Patrol from a large, well-known magazine subscription company. It has arrived with the good news that you are the big winner, having won $22 million. You have three options: a. Receive $1.1 million per year for the next 20 years. b. Have $8.5 million today. c. Have $2.5 million today and receive $800,000 for each of the next 20 years. Your financial adviser tells you that it is reasonable to expect to earn 14 percent on investments. Required: 1. Calculate the present value of each option. (Future Value of $1. Present Value of $1, Future Value Annuity of $1. Present Value Annuity of $1.) 2. Determine which option you prefer. Complete this question by entering your answers in the tabs below. Determine which option you prefer. TABLE 11.1A Future Value of $1 TABLE 11.2A Present Value of $1 TABLE 11.3A Future Value of an Annuity of $1 TABLE 11.4A Present Value of Annuity of $1