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 $142,800 at the end of the fifth year. If the firm can raise the required funds to make the investment at an annual cost of 9 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_{(First alternative)}: $ PV_{(Second alternative)}: $

Which alternative should be preferred? The (first or second) alternative should be preferred.