Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 

1. $7,250 per year at the end of each of the next eight years 

2. $49,650 (lump sum) now 

3. $98,650 (lump sum) eight years from now

Requirements 

1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? Round to nearest whole dollar. 

2. Would your preference change if you used a 10% discount rate?