1. A dog being trained at Good-As-Gold (GAG) Canine Obedience School repeatedly bit a customer who was dropping off her golden retriever for training. The customer was bit on her face, arms, and legs. She filed a lawsuit against GAG. GAG' s liability insurer has offered three settlement options ("structured settlements") to the claimant. Here are the settlement options: Option #1: A payment of $60,000 today and $60,000 five years from today. Option #1: today. Four annual payments of $35,000 with the first payment one year from three years, Option #2: Five payments of $40,000, with the payments one year, five years, seven years, and nine years from today. Assuming a 6% discount rate, which settlement option is best from the perspective of GAG and its insurer? Justify your answer with the appropriate calculations. (5.5 points)