You Have Won $1,250,000 in a Lottery

You have won $1,250,000 in a lottery.Your winnings will be paid to you in equal annual year-end installments of $250,000 over 5 years.You estimate that you can earn 4% on your investments.The present value of $1 for 5 periods at 4% is 0.822.The present value of an ordinary annuity of $1 for 5 periods at 4% is 4.452.The present value of your $1,250,000 winnings would be closest to:

A) $1,113,000.
B) $205,500.
C) $1,027,500.
D) $1,250,000.