3. Mr. Knowitall has been awarded a bonus for his outstanding work. His employer offers him a choice of a lump-sum of $5,000 today, or an annuity of $1,250 a year for the next five years. Which option should Mr. Knowitall choose if his opportunity cost is 9 percent? (4 points) [Notice: After you show your calculation work and compare these two options, you need to clearly write down which option Mr. Knowitall should choose.]