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Kevin won a lottery and has a choice of the following when money is worth...

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Accounting

Kevin won a lottery and has a choice of the following when money is worth 6.4% compounded annually:

Option 1 $34 000 per year paid at the end of each year for 7 years

Option 2 $10 000 paid now, $41 000 after the second and third years, and $52 000 at the end of each of the remaining 7 years

What is the PV of Option 1?

a.$187344

b.$187132

c.$199108

d.$189353

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