Present Value Computation Kerry Bales won the state lottery and was given four choices for receiving her winnings. 1. Receive $400,000 right now. 2. Receive $432,000 in 1 year. 3. Receive $75,000 at the end of each year for eight years. 4. Receive $38,000 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) 1.5 400,000 (a) 2.5 400,000 (a) 3. $ 432,480 x (a) 4 5 453,136 x (b) Option 3