Computing PBO; Comparison to Defined Contribution Plan Hewlatt Inc. is considering the implications of establishing a defined benefit plan for its employees with the following three annual benefit payment options. 1. Annual retirement benefit =2% Final annual salary Years of service; benefits would vest each year by 10% until the employee is 100% vested . 2. Annual retirement benefit =1% Final annual salary Years of service; benefits would vest each year by 10% until the employee is 100% vested. 3. Lump sum payment at retirement date equal to the present value of the annual retirement benefit described in option 1, and assuming a 15 -year retirement period. Required Note: Do not round numbers until the final answer. Total liability, Year 1: \$