Bridget Jones has a contract in which she will receive the following payments for the next five years: $20,000, $21,000, $22,000, $23,000, $24,000. She will then receive an annuity of $27,500 a year from the end of the sixth year through the end of the 15^th year. The appropriate discount rate is 18 percent

a. What is the present value of all future payments?

b. If she is offered a buyout of the contract for $49,000, should she do it?