A firm must choose between two investment alternatives, each costing $$90,000.$ The first alternative generates $$25,000$ a year for five years. The second pays one large lump sum of $$150,400$ at

the end of the fifth year. If the firm can raise the required funds to make the investment at an annual cost of $10$ percent, what are the present values of two investment alternatives? Use

Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.

$PV{V}_{(Firstalternative)}$:$

PV $($Second alternative$)$: $

Which alternative should be preferred?

The $-$ Select$-$ alternative should be preferred.