Bridget Jones has a contract in which she will receive the following payments for the next five years : $18,000 , $ 19.000 , 20,000 $21.000 and $22,000 . She will then receive an annuity of $24.000 a year from the end of the 6th through the end of the 15th year The appropriate discount rate is 13 percent .

a. What is the present value of all future payments ? Use Appendix and for an approximate answer , but calculate your final answer using the formula and financial calculator methods (Do not round intermediate calculations Round your final answer 2 decimal places )

Present value $

b. If she is offered 135,000 to cancel the contract should she do it? YES NO