PLEASE SHPW BA$11$ PLUS CALUCLATOR INPUTS$/$STEPS

$13.$ Angus McScrooge comes to you for financial advice. He is considering adding a downtown parking lot to his holdings. The owner of the property has given McScrooge four different payment options. Which of the following options would you recommend, and why? Remember that you are advising the buyer here. Hint: We can only compare various payout options on a present$-$value basis.

McScrooge tells you he can earn $5\mathrm{.}82\%$ annual interest, compounded monthly on his money. You have no reason to question his assumption. For each option, determine the present value of all relevant cash flows for $0\mathrm{.}8$ points each and then provide your final answer for $0\mathrm{.}8$ points $($total of $4$ points for this problem$).$ Remember, Angus is assuming monthly compounding.

a$.$ Option $1.$ Pay $$120,000$ today.

b$.$ Option $2.$ Pay a lump sum of $$145,000$ at the end of three years.

c$.$ Option $3.$ Pay $$3,600$ at the end of each month for three years.

d$.$ Option $4.$ Pay $$40,000$ immediately plus $$95,000$ in a lump sum three years from now.

e$.$ Which option do you recommend, and why?