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William has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $126,000 cash payment
William has just won the Flyball Lottery. He has two options for receiving his prize. The first option is to accept a $126,000 cash payment today. The second option is to receive $16,600 at the end of each of the next 19 years and a $25,600 lump sum payment in the 20 th year. William can invest money at a 6% 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 0 decimal place, e.g. 58,971.) Which option should William choose to receive his winnings? (b) If William could invest money at 9%, 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.) Which option should he choose
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