After completing a long and successful career as senior vice president for a large bank, you are preparing for retirement. After visiting the human resources office, you have found that you have several retirement options to choose from:

a$.$ An immediate cash payment of $$1\mathrm{.}08$ million.

b$.$ Payment of $$57,000$ per year for life.

c$.$ Payment of $$47,000$ per year for $5$ years and then $$67,000$ per year for life $($this option is intended to give you some protection against inflation$).$

You believe you can earn $7$ percent on your investments and your remaining life expectancy is $10$ years.

Required:

Calculate the present value of each option. $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)($Use appropriate factor$($s$)$ from the tables provided. Do not round intermediate calculations. Enter your answers in whole dollars, not in millions. Round the final answer to nearest whole dollar.$)$

$\backslash$table$[[,$Present Value$],[$Option A$,],[$Option B$,],[$Option C$,]]$

Determine which option you prefer.

Option A

Option B

Option C