Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $70,000 cash immediately, (2) $24,000 cash immediately and a six-period annuity of $8,100 beginning one year from today, or (3) a six-period annuity of $14,500 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 7%, determine the present value for the above options. Which option should Alex choose?

Assuming an interest rate of 7%, determine the present value for the above options. Which option should Alex choose? (Round your final answers to nearest whole dollar amount.)

	Annuity Payment	PV Annuity		Immediate Cash		PV Option
Option 1			+		=	$0
Option 2			+		=	$0
Option 3			+		=	$0
Which option should Alex choose?