Answer each of the following independent questions.

Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $21,000 cash immediately and a six-period annuity of $7,700 beginning one year from today, or (3) a six-period annuity of $13,300 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 interest rate of 7% determine PV value

annunity payment....pv annuity....+ immediate cash....= PV OP

op 1 ? ? ? ?

op 2 ? ? ? ?

op 3 ? ? ? ?

2. which option should alex choose?