Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options

1. Pay $30,000 for the car today.

2. Pay $3,000 at the end of each quarter for three years.

Required:
a.	Assuming Denzel uses a discount rate of 12% (or 3% quarterly), Calculate the present value? Use Table 4. (Do not round PV factors. Round your answers to 2 decimal places. Omit the "$" sign in your response.)

	Present Value
Option 1	$
Option 2	$

b.

Which payment option has to be chosen?

	Option 2
	Option 1