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:

1. An immediate cash payment of $1.18 million.
2. Payment of $53,000 per year for life.
3. Payment of $43,000 per year for 5 years and then $63,000 per year for life (this option is intended to give you some protection against inflation).

You believe you can earn 9 percent on your investments and your remaining life expectancy is 10 years.

Required:

1.Calculate the present value of each option. (Future Value of $1,Present Value of $1,Future Value Annuity of $1,Present Value Annuityof $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.)