Carey Company owns a plot of land on which buried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Carey wishes to sell the land now. It has located two potential buyers: Buyer A, who is willing to pay $630,000 for the land now, and Buyer B, who is willing to make 21 annual payments of $91,000 each, with the first payment to be made 3 years from today. Assuming that the appropriate rate of interest is 9%. (Use the below table.)

Calculate the present value for each of the buyer.

PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 90090 90909 1.73554 2.48685 3.16986 3.79079 89286 1.75911 2.40183 3.03735 3.60478 2.57710 4 3.23972 3.10245 3.35216 4.62288 5.20637 5.74664 6.24689 6.71008 4.48592 4.35526 4.56376 4.96764 5.32825 5.65022 4.16042 5.99525 6.41766 5.33493 5.75902 6.14457 5.14612 5.53705 5.88923 5.23371 6.20652 6.49236 6.74987 7.13896 6.80519 7.16073 7.48690 7.78615 6.49506 6.81369 7.10336 7.36669 6.19437 7.90378 8.24424 8.55948 13 6.62817 6.81086 5.72448 5.84737 7.37916 8.02155 8.20141 8.36492 8.51356 6.04716 6.12797 6.19823 6.25933 9.12164 9.37189 7.24967 8.75563 8.95012 9.12855 7.83929 9.81815 10.20074 10.37106 10.52876 10.67478 9.29224 9.44243 9.58021 9.70661 8.64869 8.77154 8.88322 8.98474 9.07704 6.35866 6.39884 6.43377 6.46415 23 8.34814 7.84314 9.92897 10.02658 10.80998 10.93516 11.05108 11.15841 11.25778 9.16095 9.23722 9.30657 9.36961 9.42691 8.54780 28 29 10.19828 10.27365 8.69379 8.05518 6.56598 11.34980 6.57911 10.34280 10.40624 9.47901 9.52638 9.56943 9.60858 9.64416 8.08499 32 8.76860 8.80054 8.82932 8.85524 11.51389 11.58693 8.13535 8.15656 8.17550 10.51784 6.60910 6.61661 6.62314 9.67651 9.70592 9.73265 9.75697 8.87859 8.20751 11.82887 11.87858 11.92461 8.91859 8.93567 6.63375 6.63805 6.64178 39 10.72552 8.24378