George Penny will receive $32,800 for the next 16 years as a payment for a slogan he coined. Currently a 14 percent discount rate is appropriate. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round the final answers to the nearest whole dollar.)

a-1. Calculate the present value.

Present value $

a-2. Should he be willing to sell his future rights now for $208,000?

Yes

No

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

Present value $

b-2. Should he be willing to sell his future rights now for $208,000, if payments will be made at the beginning of the year?

Yes

No