Present Value Computation Kerry Bales won the state lottery and was given four choices for receiving her winnings.

1. Receive $200,000 right now.
2. Receive $216,000 in 1 year.
3. Receive $40,000 at the end of each year for eight years.
4. Receive $20,000 at the end of each year for 30 years.

Assuming Kerry can earn interest of 8% compounded annually, (a) calculate each option and (b) determine which option Kerry should choose? Use Excel or a financial calculator for computation. Round your answer to nearest dollar.

(a)	1.	Answer
(a)	2.	Answer
(a)	3.	Answer
(a)	4.	Answer
(b)		AnswerOption 1Option 2Option 3Option 4