You Have Won $4,400,000 in a Lottery

Multiple Choice

You have won $4,400,000 in a lottery.Your winnings will be paid to you in equal annual year-end installments of $440,000 over 10 years.You estimate that you can earn 6% on your investments.The present value of $1 for 10 periods at 6% is 0.558.The present value of an ordinary annuity of $1 for 10 periods at 6% is 7.36.The present value of your $4,400,000 winnings would be closest to:

A) $4,400,000.
B) $3,238,400.
C) $2,978,800.
D) $3,850,000.