Julie has just retired. Her companys retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $126,000 immediately as her full retirement benefit. Under the second option, she would receive $13,000 each year for ten years plus a lump-sum payment of $52,000 at the end of the ten-year period.

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

Required:
1a.	Calculate the present value for the following assuming that the money can be invested at 7%. (Round discount factor(s) to 3 decimal places.)