A construction company has for sale a heavy duty drilling machine. The company has found a buyer willing to pay either R50 000 now or a series of cash flow shown in the Table below: Year Payment 1 R8 000 R9 000 3 R12 000 R16 000 R20 000 The company plans to invest any received payments in an account that earns 10% annual interest. The company intends to buy a more sophisticated drilling machine in 5 years from now and would like to select the option that has the highest value at that time. Assume that all payments are at the beginning of the period. a. What is the future value of the lump sum 5 years from now? 3 Marks b. What is the future value of the mixed stream 5 years from now? 6 Marks C. Based on your findings in parts (a) and (b), which alternative must the company choose? 1 Mark