Q 2.61. You can choose between the following rent pay- ments: a A lump sum cash payment of $100,000; b 10 annual payments of $12,000 each, the first oc- curring immediately; e 120 monthly payments of $1,200 each, the first oc- curring immediately. (Friendly suggestion: This is a lot easier to calculate on a computer spreadsheet.) Now choose among them: 1. Which rental payment scheme would you choose if the interest rate was an effective 5% per year? 2. Spreadsheet question: At what interest rate would you be indifferent between the first and the second choice above? (Hint: Graph the NPV of the second project as a function of the interest rate.)