Steve Coleman has just won the state lottery and has the following three payout options forafter-tax prizemoney:

1. $ 158 comma 000

$158,000 per year at the end of each of the next six years

2. $ 320 comma 000

$320,000 (lump sum) now

3. $ 520 comma 000

$520,000 (lump sum) six years from now

The annual discount rate is9%. Compute the present value of the second option.(Round to nearest wholedollar.)

Present value of$1:

8%

9%

10%

1

0.926

0.917

0.909

2

0.857

0.842

0.826

3

0.794

0.772

0.751

4

0.735

0.708

0.683

5

0.681

0.650

0.621

6

0.630

0.596

0.564

7

0.583

0.547

0.513