A company must make a choice between two investment alternatives. Alternative 1 will return the company $30,000 at the end of five years and $40,000 at the end of nine years. Alternative 2 will return the company $11,500 at the end of each of the next nine years. The company normally expects to earn a rate of return of 14% on funds invested. Compute the present value of each alternative and determine the preferred alternative according to the discounted cash flow criterion.

The present value of Alternative 1 is ?

The present value of Alternative 2 is ?

The preferred alternative is ?