John wins the lottery and has the following three payout options for afterminus-tax prizemoney:1.$150,000 per year at the end of each of the next six years2.$300,000 (lumpsum) now3.$500,000 (lumpsum) six years from nowThe required rate of return is9%. What is the present value if he selects the secondoption? Round to nearest whole dollar.Present value of$1:
| 8% |
9% |
10% |
| 1 |
0.926 |
0.917 |
0.909 |
| 2 |
0.857 |
0.842 |
0.826 |
| 3 |
0.794 |
0.772 |
0.751 |
| 4 |
0.735 |
0.708 |
0.683 |
| 5 |
0.681 |
0.65 |
0.621 |
| 6 |
0.63 |
0.596 |
0.564 |
| 7 |
0.583 |
0.547 |
0.513 |