Problem $7-27$

A $$500,000$ state lottery prize is spread evenly over ten years $($ $$50,000$ a year$)($Alternative $1),$ or you may take a lump distribution of $$193,000($Alternative $2).$ If you can earn $7$ percent, calculate the present values of both alternatives. Use Appendix $D$ to answer the question. Round your answers to the nearest dollar.

PV$($Alternative $1)$: $

PV$($Alternative $2)$: $

Which alternative is better?