(Solution Download) Julie has just retired. Her companyAc??cs retirement program has two options as to how retirement

 Julie has just retired. Her companyAc??cs retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of \$142,000 immediately as her full retirement benefit. Under the second option, she would receive \$21,000 each year for five years plus a lump-sum payment of \$61,000 at the end of the five-year period. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

Required:

1a.

Calculate the

present value for the following assuming that the money can be

invested at 14%.(Round

discount factor(s) to 3 decimal places.)

f you can invest money at a 14% return, which option would

you prefer?

 First option Second option

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