ces Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julle would receive a lump sum of $135,000 immediately as her full retirement benefit. Under the second option, she would receive $18,000 each year for 12 years plus a lump-sum payment of $54,000 at the end of the 12-year period. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 11%. 1-b. If she can invest money at 11%, which option would you recommend that she accept? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Calculate the present value for the following assuming that the money can be invested at 11%. (Round your final answer to the nearest whole dollar amount.) Present value Option 1 Option 2 Red A Req 18 > ces Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $135,000 immediately as her full retirement benefit. Under the second option, she would receive $18,000 each year for 12 years plus a lump-sum payment of $54,000 at the end of the 12-year period. Click here to view Exhibit 148-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables. Required: 1-a. Calculate the present value for the following assuming that the money can be invested at 11%. 1-b. If she can invest money at 11%, which option would you recommend that she accept? Complete this question by entering your answers in the tabs below. Req 1A Req 1B If she can invest money at 11%, which option would you recommend that she accept? First option Second option EXHIBIT 148-1 Present Value of $1; 1(1+r) n Periods 4% 5% 6% 1 2 3 4 5 6 7 0.760 0.711 0.665 0.623 7% 8% 9% 10% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.54 11% 0.583 0.513 8 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0434 9 0,703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 10 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 11 0.650 0.585 0.527 0475 0.429 0.388 0.350 12 0.625 0.557 0497 0444 13 0.601 0.530 0469 14 0415 0.577 0.505 0.442 0.388 15 16 17 18 19 20 21 22 0.150 23 0406 0.326 0.262 24 0.390 0.310 0.247 25 26 27 28 29 30 40 0.008 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0840 0.833 0.826 0.820 0.813 0.806 0.800 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0551 0.537 0.524 0.512 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0467 0451 0.437 0423 0410 0.593 0.567 0.543 0.519 0497 0476 0.456 0437 0419 0402 0.386 0.370 0.355 0.341 0328 0.535 0.507 0.480 0.456 0.432 0410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0,218 0.204 0.191 0.179 0.168 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.123 | 0.112 0.103 0.094 0.086 0.397 0.356 0319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0092 0.083 0.076 0069 0.368 0.326 0.290 0258 0.229 0.204 0.182 0.163 0.145 0.130 0.116. 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.340 0.299 0.263 0.232 | 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.555 0.481 0417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 0.534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0036 0.032 0.028 0.513 0.436 0.371 0.317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0018 0.032 0.028 0.024 0.021 0494 0416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0014 0456 0.377 0312 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.019 0.016 0.014 0.012 0.037 0.031 0.026 0022 0439 0.359 0.294 0.015 0.013 | 0.011 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0064 0.053 0.044 0037 0.031 0.026 0.022 0.018 0.013 0.011 0422 0342 0.278 0.226 0.184 0.083 0.123 | 0.101 0.068 0.038 0.056 0.046 0.032 0.026 0.022 0.018 0.015 0.211 0.170 0.138 0.112 0.091 0.074 0.006 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.007 0.006 0.005 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013 0.010 0.008 0.007 0.006 0.005 0.004 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.024 0.020 0.016 0013 0.010 0.009 0.038 0.030 0.006 0.005 0.361 0.004 0.003 0.281 0.220 0.172 0.135 0.106 0.011 0.066 0.017 0.014 0.009 0.007 0.084 0.053 0.042 0.033 0026 0.021 0.006 0.347 0.005 0.004 0.029 0.023 0.009 0.007 0.268 0.018 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.014 0.011 0.037 0.333 0.255 0.196 0.004 0.003 0.059 0.008 0.150 0.006 0.054 0.042 0.016 0.012 0.010 0.033 0.005 0.116 0.090 0,026 0.020 0.003 0.321 0.243 0.006 0.185 0.107 0.082 0.005 0.004 0.141 0.037 0.063 0.048. 0.029 0.022 0.014 0.011 0.017 0.008 0.007 0.005 0.003 0.002 0.004 0.003 0026 0.020 0.015 0.012 0.009 0.057 0.044 0.033 0308 0.231 0.174 0.131 0.099 0.075 0.005 0.001 0.001 0.001 0.000 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.148 | 0.135 0.009 0.009 0.007 0.003 0.002 0.002 0.002 0.002 0.002 0.002 0.002 0.001 0.004 0.003 0.002 0.000 0.000 0.000 0.000 EXHIBIT 14B-2 Present Value of an Annuity of $1 in Arrears; Ir[1-1(1+r)n] Periods 4% 5% 6% . 2 1.886 0.962 0.952 0.943 1.859 1833 3 2.775 2.723 | 2.673 4 3.630 3.546 3.465 3.387 5 4452 4.329 4.212 4.100 6 7 8 6,733 6.463 6.210 9 10 11 8.760 8.306 12 9.385 8.863 13 9.986 9.394 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 40 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.935 0.926 0.917 0909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1605 1.585 1566 1547 1.528 1.509 1492 1474 1457 1440 2.624 2.577 2.531 2.487 2444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2074 2.042 2.011 1.981 1952 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2.404 2.362 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.6891 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231. 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3410 3.326 3.245 3.167 3092 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 4.564 4423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3416 3.327 3.242 3.161 5.971 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4487 4.344 4.207 4.078 3.954 3837 3.726 3.619 3518 3421 3.329 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4946 4.772 4,607 4451 4303 4.163 4.031 3.905 3,786 3.673 3.566 3463 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.571) 7.887 7.499 7.139 6.805 6.495 6.207 5.938 5.687 5453 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 8.384 7.943 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3985 3.851 3.725 8.853 8.358 7.904 7487 7.103 6.750 6.424 6.122 5.842 5.583 5342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4.432 4.265 4.108 3.962 3.824 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6811 6462 6.142 5.847 5575 5324 5.092 4.876 4.675 4489 4.315 4.153 4001 11.652 10.838 10.106 9447 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4536 4357 4.189 4033 3.887 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4.576 4.391 4.219 4.059 3.910 12.659 11.690 10.828 10.059 9.372 8.7568.201 7.702 7.250 6.840 6467 6.128 5818 5.534 5.273 5.033 4.812 4.608 4419 | 4.243 4.080 3.928 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4442 4.263 4.097 3.942 13.590 12.462 11 470 10.594 9.818 9.129 8.514 7.963 7.469 7025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4.279 4.110 3.954 14.029 12.821 11.764 10.836 10 017 9.292 8.649 8.075 7562 7.102 6.687 6312 5.973 5.665 5.384 5.127 4.891 4.675 4476 4.292 4.121 3.963 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7645 7.170 6.743 6.359 6011 5.696 5410 5.149 4.909 4.690 4488 4.302 4.130 3.970 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 4311 4.137 3.976 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6434 6073 5.746 5.451 5.182 4.937 4.713 4.507 4318 4.143 3.981 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8422 7.843 7.330 6873 6.464 6097 5.766 5.467 5.195 4.948 4.721 4.514 4323 4.147 3.985 15.983 14.375 13.003 11.826 10.810 9.929 9.161 8488 7.896 7.372 6.906 6.491 6.118 5.783 5.480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 3.990 16.330 14.643 13.211 11.987 10.935 10.027 9.237 8.548 7.943 7409 6.935 6514 6.136 5.798 5492 5215 4.964 4.734 4.524 4.332 4.154 16.663 14.898 13.406 12.137 11 051 10.116 9.307 8.602 7.984 7441 6.961 6534 6.152 5.810 5.502 5223 4.970 4.739 4.528 4.335 4.157 3.992 4.531 4.743 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7470 6.983 6.551 6.166 5.820 5.510 5.229 4.975 4.337 4.159 3.994 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4.534 4339 4.160 3.995 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4.760 4.544 4,347 4.166 3.999 3.859