Assume thatSonic Foundry Corporationhas a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,369,000, or it can make annual payments of $289,700 for 15 years, each payment due on the last day of the year.

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Which method of payment do you recommend, assuming an expected effective interest rate of 9% during the future period?(Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

Present Value of annual payments$

Recommended payment method?

Immediate Payment?

Annual Payments?