You have just won the state lottery and have two choices for collecting your winnings. You can collect $115,000 today or recelve $22,000 at the end of each year for the next seven years. A financial analyst has told you that you can earn 8% on your investments. Required: 1. Calculate the present value of both the options (FV of \$1. PV of \$1. FVA of \$1, and PVA of S1) (Use the appropriate factor(s) from the tables provided. Round your answers to nearest whole dollar.) 2. Which alternative should you select? Option 1 Option 2 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|c|}{ Future Vate of Anusy of $ is } \\ \hline Perieds & tos & 3.0w & a.to & & 6.0N & & 5.08 & 6.54 & 702 \\ \hline 1 & 100000 & 100000 & 100000 & \multicolumn{2}{|l|}{100000} & 100000 & 100000 & 100000 & 100000 & 100006 \\ \hline 2 & 201000 & 203600 & 200000 & \multicolumn{2}{|l|}{2007%} & jo4000 & 20020 & 200000 & 200000 & 200000 \\ \hline 3 & 200010 & -300040 & 20000 & \multicolumn{2}{|l|}{211331} & 312140 & & 11520 & & 22160 \\ \hline 4 & 400040 & ci21si & Athes & \multicolumn{2}{|l|}{42304} & 424646 & 42630 & 411013 & 43742 & comi \\ \hline 5 & & 520064 & 530014 & \multicolumn{2}{|l|}{53823} & 54:502 & 5.4045 & ss758) & ssmos & 575074 \\ \hline 6 & c. 15202 & 620012 & c46a1 & 6510 & & 6rise & 6.57400 & c90151 & 6913n & \\ \hline 2 & 72134 & 7,4301 & reoses & roses: & & sotes & & ataroi & tmast & cosen \\ \hline e & ansh & asal & angse & atioss & & 2140 & & 250511 & smist & 103540 \\ \hline & 9365 & onsat & 10.1541 & 10.050 & 105 & sanes & rocain & I1obes & 11.401B & I1.97\% \\ \hline 10 & 104621 & & 11,4631 & 113574 & neo & 60611 & 12.463 & 12.5m & nisom & tartess \\ \hline Fune Val & Sue of Annuly of 51 & & & & & & & & & \\ \hline Periadn & 1.01 & 2.0x & & 3.105 & & 1.0s & 4.215 & 1.01 & & T.es \\ \hline & 113660 & 12.1642 & 1230700 & 13312a & 13. & asis & 120524 & 1420600 & 14.97154 & is. 1000 \\ \hline & 12.6250 & 13,41200 & 14,1920) & 14a1212 & 150 & orset & 152430 & istim & toleme & mates \\ \hline 0 & nuscass & 1460033 & tssim & 163675 & 166 & exe4 & 16sxch2 & most & tesast & 2016064 \\ \hline 14 & 149742 & 15.97794 & nows? & 179413 & 42 & mis & neoses & & 2torsol & nsseen \\ \hline N & roviso & 172934 & t8s4591 & & 200 & oposs & 20mbs & 215mas & nusm & \\ \hline * & 17asm & thespos & 201sen & & & nes3 & 2245 & 2165743 & 25 smas. & 27saoss \\ \hline 13 & 1tabod4 & 20.01207 & 21.7615 & & & (cors: & 242120 & 25sen & 20212a & 3044022 \\ \hline it & 36514K & 21.41231 & 224144 & 250007 & & 64541 & 2624200 & & & 3sin \\ \hline & & 22.4005 & 251160 & & & 67123 & 283573 & 3053500 & MuAn & \\ \hline 20 & z2otroe & 242m7 & 24870y & 20017 & & intes & 30.5020 & 11 osss & & \\ \hline 25 & & 3203030 & xsin26 & 40271 & & 6451 & 430 ene & sin10 & Sulsi & 6324504 \\ \hline 3 & & wosused & 4757542 & sxpes & & 08454 & 34.48s53: & Uiases & mosts & unen \\ \hline Futwe v & alue of Annuity of $1 & & & & & & & & & \\ \hline Periats & cos & 0.0s & 10.01 & 11.08 & 12.0N & 12.0s & 16.0x & 18.45 & & \\ \hline 1 & 100000 & 100000 & 100000 & 100000 & 100000 & 100000 & 100000 & 100000 & 100000 & 1.00000 \\ \hline 2 & 201000 & 200000 & 210000 & 2.11000 & 212000 & 21000 & 2.16000 & 2.15000 & 220000 & 22000 \\ \hline 3 & 324640 & 3276 & 331000 : & 3.34210 & 33740 & 30569 & 143560 & 3 arso & 344000 & 1.t1250 \\ \hline 4 & 450811 & 4.57313 & 4.54100 & 47097 & . 4mms & 434940 & 492114 & 4mm & suclos & smes \\ \hline 5 & 5.twen: & & 6.0510 & 622760 & C.3545 & C.44027 & 651010 & 67234 & 7.44160 & 0.20%03 \\ \hline 6 & & 752333 & 27issi & 791286 & 211519 & 1m & 15ys5? & a 75374 & & 11.2519 \\ \hline 7 & 192260 & 220003 & 94317 & orsm & 1006501 & & 10.7304 & 1100610 & 129150 & is.ones \\ \hline 1 & 1063663 & 110247 & ItASEs & 11.8504 & 12.2569 & 12.75726 & 122325 & & 16.4908 & 1934106 \\ \hline & 12.4156 & 1202104 & 125794 & 14.15m & 147756 . & 15.41571 & 1600535 & & anoso & 25.00212 \\ \hline & 14.45066 & 151923 & 1597742 & 18m201 & 175444 & t.41975 & & 20077 & zssoes & 3.25200 \\ \hline Future & of Anse & & & & & & & & & \\ \hline Periats & 2.01 & & 10.05 & 11.0x & 12.0x & 12.05 & 16.0x & 15.03 & 20.6k & 21. 6x \\ \hline & 1654549 & 17,50028 & 18.53117 & 125614) & 206548 & 21142 & 210452 & 243 ase & 12.15042 & 423413 \\ \hline 12 & 49773 & 20.14072 & 2+3648 & 2271319 & 2413313 & 2565018 & & 2000167 & nsuoso & \\ \hline 0 & 21.4510 & nossus & 245mm & 26.21164 & 2002011 & & 320665 & 343192 & a 460 & atsis \\ \hline 14 & 2421482 & 2601815 & 20.9761 & 3000492 & & & 37.54107 & 405047 & se linas & B 9420 \\ \hline ts & & 20360n & 3 tmat & 24.00505 & 3727971 & 6041746 & c3ser41 & A) stoot & nossis & son cuses \\ \hlinex & 20201 & 3100540 & x.oem & antions & & 46717 & sossas: & S.7174 & 07.4012 & 132.10955 \\ \hline 11 & zisson & & 425470 & 4ascot4 & 43.5657 & 517306 & sw.117e0 & srorsos & 10537065 & 17.658 \\ \hline 4 & 31.45024 & 4130134 & 45.5917 & Sosiset & & 61,72514 & (1) 39497 & 7525636 & 12attes? & 2180440 \\ \hline & dicuses & 4601146 & 511500 & 589394 & 6) 4056 & 70.74341 & & & 15476000 & \\ \hline 20 & 45.76196 & 51,t6012 & 57.27500 & & 7205244 & cosen & 910263 & tor 4415e & & 2023400 \\ \hline 25 & 721050 & 14700% & 9t3006 & 11+4121 & 110303 & Isstiss & urson & 2127sin2 & Aristiot & 16547914 \\ \hline 20 & 11323921 & & 16442402 & incoxses & & 20.1952 & xhonces. & 0474513 & IH:a15? & 327,1742 \\ \hline \end{tabular} Preient Value of Annuity of 51 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|} \hline Perieds & 1.0s & 2.0h & 3.0s & 3.7k & 4.0N & 4.20N & s.os & c.os & t.0s \\ \hline 1 & 0.70010 & 0.5009 & 0.5700? & 095196 & 0.05154 & oshas & 0.5527 & 0.04340 & ondse \\ \hline 2 & 197040 & 1.44156 & t91347 & t.7128) & & 13793 & 1.1594 & 1mbin & 1 sceon \\ \hline 3 & 2940m & 283581 & 2mes1 & & 27000 & 27619 & 272025 & 267201 & \\ \hline 4 & 390ty? & 3.007 & 271710 & 265121 & 262mo & 260061 & 254505 & 2.45511 & \\ \hline 5 & 4.5534 & 4.71246 & 4.57971 & & 4.45187 & 4 (4) & 4.3294 & 421200 & 4.10020 \\ \hline 6 & 5.70543 & 5.6014) & 5.41719 & 5.28507 & 524214 & & & & 4.7 CSS4 \\ \hline? & 6.72419 & 6.47190 & 623028 & 6.05790 & 600205 & & 5.76sy & 5.423 & sxhes \\ \hline 4 & 76516a & 73848 & 701560 & 600280 & 67327 & 6ush & 645121 & 6.2007 & 5.27130 \\ \hline 9 & ese602 & 8,16224 & 7.70611 & 1500n & 7.4553 & 735135 & 3.1072 & 60010 & 651520 \\ \hline 10 & 247130 & 850259 & A 53020 & 82127 & 411000 & 101055 & 77217 & 73000 & 7 anst \\ \hline \end{tabular} Present Value of Annuity of \$1 Present Value of Annuity of $1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline Periade & t.ok & 2.0s & 10.0% & 11.0s & 12.08 & 13.0N & 14.015 & is.os & 20.0s & 28.0s \\ \hline 1 & Q.9isps & 0.9170 & 0.90509 & 0.90050 & & 0.xe496 & a.m719 & 085557 & 0.8373 & 080000 \\ \hline 2 & 1.78326 & 1.75011 & 1,73554 & 1.71252 & 1.09005 & 1.66810 & 164666 & 167571 & 1527n & 1.44000 \\ \hline 3 & 257710 & 253120 & 249685 & 2.44371 & 2.40183 & 236115 & 2.32163 & 2.2mm & 210543 & 13500 \\ \hline 4 & 331213 & 323972 & 3.16387 & 3.10245 & 303735 & 2.97447 & 29131 & 205+96 & 2san & 236100 \\ \hline 5 & 299271 & 383955 & 379079 & 365590 & 360478 & 251723 & 3.4306 & 3.25216 & 250051 & 2.64928 \\ \hline 6 & 4.622s & 4.48592 & 4.35576 & 4.23054 & 4,11141 & 399755 & 3ktw67 & 3.7248 & 232551 & 2.55142 \\ \hline 7. & 520637 & 50325 & 4 ses42 & 471220 & 456376 & 442261 & & 416042 & 160450 & 3.16114 \\ \hline 8 & 574664 & 553432 & 5.23493 & 5.14612 & 496764 & & 45395 & cos32 & 34716 & \\ \hline 9 & 6.24659 & 599525 & 575902 & 553705 & 532025 & 5.13166 & 454537 & mise & 40007 & 34513 \\ \hline 10 & 6.71008 & 541766 & 5.14457 & 5.8shn & 5.65022 & 5.42624 & 521612 & soisn & 41824 & 357050 \\ \hline \\ \hline Periate & c.os & 0.01 & 10.05 & 11.0% & 12.04 & 12.01 & 16.015 & 15.0% & 20.0s & 21.0% \\ \hline 11 & 2,13ses & 680519 & 6.49506 & 5.20652 & 5.93770 & 5.65694 & 5.45273 & 523971 & 47706 & 365640 \\ \hline 12 & 7508 & 7.16073 & 6.1350 & 6.49235 & 6.10437 & 59165 & 5.6029 & 5.42062 & 4.43922 & 272512 \\ \hline 13 & & 7.48650 & 7.10296 & 6.74937 & 6.42355 & 6.12181 & 531236 & 550915 & 453268 & 376010 \\ \hline 14 & 824424 & 7.73615 & 7.3669 & 6.94187 & 6.5217 & 630249 & 600207 & 5.72448 & 461057 & \\ \hline 15 & 85504 & 806069 & 760608 & 7.19081 & 681086 & 6.46238 & 6.1417 & 53473 & 467547 & 385976 * \\ \hline 16 & 8:5137 & 0.31296 & 7.82371 & 7,37916 & 697390 & 6. cass3 & 6.26506 & 595423 & 472956 & 281741 \\ \hline 17 & 212164 & 8.5433 & 8.02155 & 7.54879 & 7.11963 & 6.7200 & 6.7286 & 604715 & 4.77463 & 390923 \\ \hline it & 237189 & 8.75463 & 120141 & 7,70162 & 7.2497 & 6.83991 & 6.46742 & 6.12797 & 4.01219 & 392794 \\ \hline 19 & 960360 & 185011 & 8.35492 & 783929 & 7.3577 & 693797 & 6.55037 & 6.19823 & 4.84350 & 39235 \\ \hline 20 & 931815 & 9.12855 & 351355 & 75633 & 7.46044 & 7.02415 & 6.62313 & 6.25933 & 4.56958 & 30538 \\ \hline 25 & 105747 & 9.82rs: & 907704 & 842174 & 784314 & 7.32993 & 6.7203 & 6.46415 & 4.94755 & 39545 \\ \hlinex & 112870 & 1027365 & 24264r & E.cos7s & 8.05510 & 7,49465 & 7.00266 & 6.5658 & 4.9744 & 395505 \\ \hline \end{tabular}