Exercise $12$A$-2($Algo$)$ Basic Present Value Concepts $[$LO$12-7]$

Julie just retired and has two options for receiving her retirement benefits. Under the first option, she would immediately receive a lump sum of $$142,000.$ Under the second option, she would receive $$21,000$ each year for $5$ years plus a lump$-$sum payment of $$61,000$ at the end of the $5-$year period.

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using tables.

Required:

$1-$a$.$ Calculate the present value for the following assuming that the money can be invested at $14\%.$

$1-$b$.$ If she can invest money at $14\%,$ which option should she choose?

Complete this question by entering your answers in the tabs below.

Required $1$A

Calculate the present value for the following assuming that the money can be invested at $14\%.$

Note: Round your final answer to the nearest whole dollar amount.

$\backslash$table$[[,$Option $1,$Option $2],[$Present value,,$]]$