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 $142,000 immediately as her full retirement benefit. Under the second option, she would receive $21,000 each year for five years plus a lump-sum payment of $61,000 at the end of the five-year period.

Use Excel or a financial calculator to solve. Round answers to the nearest dollar.

Required:
1a.	Calculate the present value for the following assuming that the money can be invested at 14%.

	Present Value of First Option
Lump-sum payment
	Present Value of Second Option
Total present value