Carrie Tune will receive $27,000 a year for the next 19 years as payment for a song she has just written. If a present 9 percent discount rate is applied: (Use a Financial calculator to arrive at the answers. Round the final answers to the nearest whole dollar.)

a-1. Calculate the present value.

Present value $

a-2. Should she be willing to sell out her future rights now for $179,000?

multiple choice 1

• No

• Yes

b-1. Calculate the present value if the payments will be made at the beginning of each year.

Present value $

b-2. Would she be willing to sell her future rights now for $179,0000, if the payments will be made at the beginning of each year?

multiple choice 2

• Yes

• No