1. (8 points) Eichelberger Trucking won a settlement in a lawsuit and was offered four different payment altematives by the defendant's insurance company. The interest rate is 6%. Ignoring the tax considerations, which of the following four alternatives has the highest present value (and thus is the best option)? Support your answer with the appropriate calculations 1) $180,000 now 2) S56,000 per year for the next 4 years (end-of-year payments) 3) S5,000 now and then $27,000 per year for the next 10 years (end-of year pay Hint: Calculate the present value of the initial $5,000 separately. Then calculate the present value the $27,000 annuity separately. Finally, add the two present value amounts together to get the overall present value $12,000 per year for the next 10 years (end-of-year payments) plus a lump sum payment of $230,000 at the end of the 11 year Hint: Calculate the present value of the $12,000 10-year annuity separately. Then calculate the present value the $230,000 payment received at the end of year 11 separately. Finally, add the two present value amounts together to get the overall present value 4)