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Please show calculations. Thumb up if right. Richard has just won the Flyball Lottery. He has two options for receiving his prize. The first option

Please show calculations. Thumb up if right.image text in transcribed

Richard has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $131,000 cash payment today. The second option is to receive $19,300 at the end of each of the next 19 years and a $24,100 lump sum payment in the 20th year. Richard can invest money at a 11% 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 O decimal place, e.g. 58,971.) Option 1 Option 2 Present value $ $ Which option should Richard choose to receive his winnings? (b) If Richard could invest money at 14%, 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 $ $ Which option should he choose? Option 2

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