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Thomashas just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $133,000cash payment today. The

Thomashas just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $133,000cash payment today. The second option is to receive $21,200at the end of each of the next19years and a $25,200lump sum payment in the20th year.Thomascan invest money at a7% rate.

(a)Calculate the present value of the two options.

b) If Thomas could invest money at 10%, calculate the present value of the two options

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