QUESTION A and B

David has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $129,000 cash payment today. The second option is to receive $25,000 at the end of each of the next 19 years and a $35,600 lump sum payment in the 20th year. David can invest money at a 8% 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 David choose to receive his winnings? Option 2 (b) If David could invest money at 11%, 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 1 nd Media Option 2