) G .H. Morgan, a large financial company, has announced that it will establish a foundation to provide scholarships to business and economics majors at your college. The company acknowledges a slight cash-flow problem at the present and gives the college president two choices: i. Take a one-time grant of $12 million immediately or, ii. Take $1 million immediately, $3 million in one year, $4 million in two years, and $5 million in three years. Of course the president of the college is euphoric and announces to the faculty that he intends to accept what he calls the $13 million alternative. As a faculty in the economics department, you are concerned that a complete analysis has not been made. a. Assuming that the relevant discount rate is 8 percent, and amounts are to be paid at the end of each year, what is the present value of the second alternative? Compute. b. Explain to the president, in a brief memo, what this revised estimate means and whether he should or should not stay with his current decision. c. Would your decision change if the discount rate is 4% percent? Compute and explain why your answer may or may not change