We need to calculate the present value of the offer using a discount rate. Let's assume a discount rate of $10\%.$

$$1,000,000$ and the end of years $11$ through $40$

Choose the correct answer provided below.

$$1,000,000$ x $9\mathrm{.}427=$ $$9,427,000$ x $0\mathrm{.}386=$ #$3,638,822$

$$1,000,000$ x $8\mathrm{.}514=$ $$8,514,000$ x $0\mathrm{.}022=$ $$187,308$

$$1,000,000$ x $9\mathrm{.}427=$ $$9,427,000$ x $0\mathrm{.}149=$ $$1,404,623$

$$1,000,000$ x $8\mathrm{.}514=$ $$8,514,000$ x $0\mathrm{.}386=$ $$3,286,404$