Exercise 11A-2 Basic Present Value Concepts [LO11-5 Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of S136,000 immediately as her full retirement benefit. Under the second option, she would receive $25,000 each year for five years plus a lump-sum payment of $55,000 at the end of the five-year period. Click here to view Exhibit 11B-1 and Exhibit 11B-2, to determine the appropriate discount factor(s) using tables. 1a. Calculate the present value for the following assuming that the money can be invested at 11%. (Use the appropriate table to determine the discount factor(s).) Present Value of First Option Cash Flowx Cash Flow | Discount Factor | - | Present Value Lump-sum payment Present Value of Second Option Cash Flowx Cash Flow | | Discount Factor | - | Present Valua Annual annuity Lump-sum payment Total present value 0 lb. If you can invest money at a 11% return, which option would you prefer? First option Second option