Jared Electronics Company Wins the State Award and Has the Following

question 51

Multiple Choice

Jared Electronics Company wins the state award and has the following three payout options for after-tax prize money: 1.$150,000 per year at the end of each of the next six years
2.$300,000 (lump sum) now
3.$500,000 (lump sum) six years from now
The required rate of return is 9%.What is the present value if the second option is chosen? (Round to nearest whole dollar.)
Present value of $1:

• A)$650,000
• B)$100,000
• C)$400,000
• D)$300,000

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