John Roberts is 54 years old and has been asked to accept early retirement from his company. The company has offered John three alternative compensation packages to induce John to retire: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. $185,000 cash payment to be paid immediately.

2. A 19-year annuity of $17,000 beginning immediately.

3. A 10-year annuity of $55,000 beginning at age 64. Required: Determine the present value, assuming that he is able to invest funds at a 7% rate.

Determine the PV of each scenario and which one he should choose.