A financial company that advertises on television will pay you $58,000 now for annual payments of $9,000 that you are expected to receive for a legal settlement over the next 10 years. Use Exhibit 1-D. a. What is the present value of the annual payments if you estimate the time value of money at 8 percent? (Round your PVA factor to 3 decimal places and final answer to the nearest whole dollar.) Present value b. Should you accept this offer? Yes No Period 1 2 3 4 5 6 10 11 12 6 7 7 8 9 13 14 15 16 17 10 19 20 25 30 40 50 8 9 10 11 12 Period 1 2 3 4 5 14 0.990 1.970 2.941 21 0.980 1.942 2.884 3.808 31 0.971 1.913 2.829 3.902 3.717 4.853 4.713 4.580 5.795 5.601 5.417 5.076 6.728 6.472 6.230 5.786 7.652 7.325 7.020 6.463 8.566 8.162 7.786 7.435 7.108 9.471 8.983 8.530 8.111 7.722 10.368 9.787 9.253 8.760 8.306 11.255 10.575 9.385 8.863 9.986 9.394 8.853 9.295 8.745 9.712 9.108 14.718 13.578 12.561 10.106 9.447 9.763 9.954 12.134 11.348 10.635 13.004 12.106 11.296 10.563 9.899 13.865 12.849 11.939 11.118 10.380 11.652 10.838 15.562 14.292 13.166 12.166 11.274 10.477 16.398 14.992 13.754 12.659 11.690 10.828 17.226 15.678 14.324 13.134 12.085 11.158 18.046 16.351 14.877 13.590 12.462 11.470 10.594 22.023 19.523 17.413 15.622 14.094 12.703 11.654 10.675 25.808 22.396 19.600 17.292 15.372 13.765 12.409 11.258 32.835 27.355 23.115 19.793 17.159 15.046 13.332 39.196 31.424 25.730 21.482 18.256 15.762 13.801 10.059 10.336 11.925 12.233 141 0.877 131 0.885 1.668 1.647 2.361 2.322 2.283 2.974 2.914 2.855 2.798 3.517 3.433 3.352 3.274 3.998 3.889 3.784 3.685 4.423 4.288 4.160 4.039 4.639 4.487 4.344 4.799 5.132 4.946 4.772 4.607 5.019 5.426 5.216 5.687 5.453 5.234 5.918 5.660 5.421 132 E 043 CEAS 41 0.962 1.886 2.775 3.630 4.452 5.242 6.002 6.733 151 0.870 1.626 161 0.862 1.605 51 0.952 1.859 2.723 3.546 4.329 171 0.855 1.585 61 0.943 1.833 2.673 3.465 4.212 4.917 5.582 6.210 6.802 7.360 7.887 8.304 2.246 2.210 181 191 0.847 0.840 1.566 1.547 2.174 2.140 2.639 3.127 3.058 2.991 3.498 3.410 3.326 3.706 3.605 3.922 3.812 4.207 4.078 3.954 3.837 4.451 4.303 4.163 4.494 4.339 4.833 4.659 5.029 4.836 4.656 4.486 5,197 4.988 4.793 4.611 ESS *** --- 71 0.935 1.808 2.624 3.387 4.100 4.767 5.389 5.971 6.515 7.024 7.499 2.743 2.690 3.199 3.589 7.943 8.358 81 0.926 1.783 2.577 3.312 4.031 4.192 4.327 4.439 3.993 4.623 5.206 5.747 6.247 6.710 7.139 7.536 7.904 8.244 8.559 8.851 9.122 9.372 9.604 9.818 251 0.800 1.440 91 0.917 1.759 2.531 3.240 3.890 4.486 5.033 5.535 5.995 6.418 201 0.833 1.528 2.106 1.952 2.589 2.362 2.166 3.656 3.725 6.805 7.161 7.487 7.786 8.061 8.313 8.544 8.756 8.950 9.129 9.823 10.274 10.757 10.962 301 0.769 1.361 1.816 101 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7.824 8.022 8.201 8.365 8.514 9.077 9.427 9.779 9.915 111 0.901 1.713 2.444 3.102 3.696 351 0.741 4.231 4.712 5.146 5.537 5,889 6.207 6.492 6.750 6.982 7.191 7.379 7.549 7.702 7.839 7.963 8.422 8.694 8.951 9.042 401 0.714 1.2897 1.224 1.696 1.589 1.997 2.220 1.849 2.035 2.689 2.436 2.951 2.643 2.385 2.168 2.802 2.508 2.263 2.925 2.598 2.331 3.161 3.329 3.463 3.019 2.665 2.379 3.571 3.092 2.715 2.414 2.752 3.190 2.779 2.456 3.147 2.438 121 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.102 7.250 7.366 7.469 7.843 8.055 8.244 8.304 50% 0.667 1.111 1.407 1.605 1.737 1.824 1.883 1.922 1.948 1.965 1.977 1.985