You win the lottery and must decide how to take the payout. Use a 12% discount rate. What is the present value of $12,000 a year received at the end of each of the next ten years? Present Value of $1 Periods 5 6 7 4% 0.822 0.790 0.760 0.731 0.703 0.676 6% 0.747 0.705 0.665 0.627 0.592 0.558 8% 0.681 0.630 0.583 0.540 0.500 0.463 10% 0.621 0.564 0.513 0.467 0.424 0.386 12% 0.567 0.507 0.452 0.404 0.361 0.322 8 9 10 Present Value of Annuity of $1 Periods 4% 6% 8% 10% 12% A. $120,000 B. $67,800 C. $81,768 D. $3,864 10 0.676 0.558 0.463 0.386 0.322 Present Value of Annuity of $1 Periods 4% 5 4.452 6 5.242 7 6.002 8 6.733 9 7.435 10 8.111 6% 4.212 4.917 5.582 6.210 6.802 7.360 8% 3.993 4.623 5.206 5.747 6.247 6.710 10% 3.791 4.355 4.868 5.335 5.759 6.145 12% 3.605 4.111 4.564 4.968 5.328 5.650 O A. $120,000