Julie has just retired. Her company$$s retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $$132,000$ immediately as her full retirement benefit. Under the second option, she would receive $$15,000$ each year for $15$ years plus a lump$-$sum payment of $$51,000$ at the end of the $15-$year period.

Click here to view Exhibit $14$B$-1$ and Exhibit $14$B$-2,$ 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 $14\%.$

$1-$b$.$ If she can invest money at $14\%,$ which option would you recommend that she accept?