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) $86,000 cash immediately, (2) $32,000 cash immediately and a six-period annuity of $9,200 beginning one year from today, or (3) a six-period annuity of $17,400 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-a.Assuming an interest rate of 6%, determine the PV value for the above options.

Annuity Payment PV Annuity + Immediate Cash = PV Option

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Option 2 ( ) ( ) ( ) ( )

Option 3 ( ) () ( ) ( )

1-b.Which option should Alex choose?