Bridget Jones has a contract in which she will receive the following payments for the next five years: $4,000, $5,000, $6,000, $7,000, and $8,000. She will then receive an annuity of $10,000 a year from the end of the 6th through the end of the 15th year. The appropriate discount rate is 9 percent.

a. What is the present value of all future payments? Use Appendix B and Appendix D 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 to 2 decimal places.)

b. If she is offered $62,000 to cancel the contract, should she do it?