Assume that Alan Corporation has a contractual debt outstanding. Alan has available two means of settlement: It can either make immediate payment of $$1,535,000,$ or it can make annual payments of $$2000,0000$ for $10$ years, each payment due on the last day of the year.

Which method of payment do you recommend, assuming an expected effective interest rate of $8\%$ during the future period? $($Round factor values to $5$ decimal places, e$.$g$.1\mathrm{.}25124$ and final answer to $0$ decimal places, e$.$g$.458\mathrm{.}581.)$

Present Value of Annual Payments:

Recommend payment method: Annual payments or immediate payments