6 Your mother is planning to retire this year. Her firm has offered her a lump sum retirement payment of S50,000 or a $6,000 lifetime annuity whichever she chooses. Your mother is in reasonably good health and expects to live for at least 15 more years. Which option should she choose, assuming that an 8% interest rate is her opportunity cost? 7) Steve is considering taking early retirement, having saved $400,000. Steve desires to determine how many years the savings will last if $100,000 per year is withdrawn at the end of each year. The appropriate opportunity cost is 10%. This homework includes problems from Time Value of Money. Please draw a timeline for each problem, clearly mark all the inputs, and indicate the unknown component on the timeline