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 $135,000 immediately as her full retirement benefit. Under the second option, she would receive $18,000 each year for 12 years plus a lump-sum payment of $54,000 at the end of the 12-year period. Click here to view Exhibit 148-1-and Exhibit 148-2, 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 11%. 1-b. If she can invest money at 11%, which option would you recommend that she accept? Complete this question by entering your answers in the tabs below. Req 1A Req 18 Calculate the present value for the following assuming that the money can be invested at 11%. (Round your final answer to the nearest whole dollar amount.) Present value Option 1 Option 2 EXHIBIT 148-1 Present Value of $1; 1(1+r)n Periods 4% 1 0.962 2 0.925 3 0.889 0.840 0.816 5% 6% 7% 8% 0.952 0943 0.935 0.926 0.907 0.890 0.873 0.857 0.864 0.794 4 0.855 0.823 0.792 0.763 0.735 0.708 S 0.822 0.784 0.747 0.713 0.681 0.650 6 0.790 0.746 0.705 0.666 0.630 0.596 7 0.760 0.711 0.665 8 0.731 0.677 0.627 19 0.703 0.645 0.592 0.361 10 0.676 0.614 0.558 11 0.650 0.585 0.527 12 0.625 0.557 0.497 0.444 0.397 13 0.601 0.530 0.469 0.415 14 0.577 0.505 0.442 0.388 15. 0.555 0.481 0.417 0.362 16 0.534 0.458 | 0.394 0.339 17 0.513 0.436 0.371 0.317 18 0.494 0.416 0.350 0.296 19 0475 0.396 0.331 0.277 20 0.456 0.377 0.312 21 0.439 0.359 0.294 22 0.422 0.342 0.278 23 0.406 0.326 0.262 24 0.390 0.310 25 26 27 28 29 30 40 9% 10% 11% 12% 13% 14% 15% 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.840 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.718 0.833 0826 0.820 0813 0.706 0.694 0.683 0.672 0.661 0.272 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0437 0423 0.410. 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0419 0.402 0.386 0.370 0.355 0.341 0.328 0.564 0.335 0.507 0480 0456 0432 0.410 0.390 0.370 0.352 0335 0.319 0.303 0.289 0.275 0.262 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.544 0.500 0.460 0.424 0.391 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.508 0.463 0422 0.386 | 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0.116 0.107 0.475 0.429 0.388 0.350 0.317 0.287 0.261 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.075 0.069 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0,044 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0,051 0.045 0.040 0.035 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0.258 0.215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.012 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0.211 0.170 0.138 0.112 0091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015. 0.013 0.010 0.008 0.007 0.006 0.005 0.375 0.295 0.233 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.361 0.281 0.220 0.172 0.135 0.106 0.084 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.347 0.268 0.207 | 0.161 0.125 0,098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0333 0.255 0.196 0.150 0.116 0.090 0.069 0.0541 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.005 0.208 0.142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 16% 17% 18% 19% 20% 21% 22% 23% 0.855 0.847 24% 0.806 0.800 25% 0.731 0.650 0.640 0.010 0.009 0.007 0.006 0.005 0.004 0.009 0.007 0.006 0.005 0.004 0.003 0.007 0.006 0.005 0.004 0.003 0.002 0.006 0.005 0.004 0.003 0.002 0.002 0.005 0.004 0.003 0.002 0.002 0.002 0.004 0.003 0.003 0.002 0.002 0.001 0.001 0.000 0.000 0.000 0.000 0.000 Present Value of an Annuity of $1 in Arrears; 1 r[1-1(1+r)] Periods 4% 1 5% 6% 0.962 0.952 0.943 2 1.886 1.859 1.833 7% 0.935 1808 8% 9% 10% 11% 0.926 0.917 1.783 1.759 3 4 5 6 5.242 5076 4.917 4.767 7 6.002 5.786 5.582 5.389 8 6.733 6.463 6.210 5.971 9 7.435 7,108 6.802 6515 10 8.111 7,722 | 7360 7.024 11 12 13 9.385 8.863 8.384 7.943 7.536 9.986 9.3941 8.853 8.358 7.904 7.487 14 10.563 9.899 9.295 8.745 8.244 7.786 7.367 15 11.118 10.380 9.712 9.108 8.559 8.061 16 11.652 10.838 10.106 9.447 8.851 17 12.166 11.274 10.477 9.763 9.122 6.628 6.302 6.811 6.462 6.974 6.604 7.120 6.729 18 19 12.659 11.690 10.828 10.059 9.372 13.134 12.085 11.158 10.336 9.604 20 21 22 23 8.883 24 8.985 25 26 27 28 29 30 40 15.622 14.094 12.783 11.654 10.675 9.823 9.077 15.983 14.375 13.003 11.826 10.810 9.929 9.161 16.330 14.643 13.211 11.987 10.935 10.027 9.237 16.663 14.898 13.406 12.137 11.051 10.116 9.307 16.984 15.141 13.591 12.278 11.158 10.198 9.370 17.292 15.372 13,765 12.409 11.258 10.274 9427 8.694 8.055 7.496 7.003 19.793 17.159 15.046 13.332 11.925 10.757 9.779 8.951 8.244 7.634 7.105 8.602 7.984 7.441 6.961 8.650 8.022 7.470 6.983 2.775 2.723 2.673 2.624 2.577 2.531 2487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 2074 2042 2011 1981 1952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 2.540 2.494 2.448 2404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 2.926 2.864 2.803 2.745 2.689 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 3.245 3.167 3.092 3.020 2.951 5.206 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 3.508 3416 3.327 3242 3.161 5.747 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3,954 3.837 3.726 3.619 3518 3.421 3.329 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4607 4.451 4.303 4.163 4.031 3.905 3.786 3.673 3566 3.463 6.710 6418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 4.054 3.923 3.799 3.682 3.371 8.760 8.306 7.887 7499 7.139 6.805 6.495 6.207 5.938 5.687 | 5.453 | 5.234 5.029 4.836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 7.161 6.814 6492 6.194 5.918 5.660 5421 5.197 4.988 4.793 4.611 4.439 4.278 4.127 3.985 3851 3.725 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 4.362 4.203 4.053 3.912 3.780 6.982 6.002 5.724 5.468 5.229 5.008 4.802 4.611 4432 4.265 4.108 3.962 3824 7.606 7.191 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4489 4315 4.153 4001 3.859 8.313 7.824 7.379 6.265 5.954 5.668 5.405 5.162 4.938 4.730 4.536 4.357 4.189 4.033 3.887 8.544 8.022 7.549 6.373 6.047 5.749 5.475 5.222 4.990 4.775 4576 4.391 4219 4059 3910 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 4.608 4419 42434080 3.928 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5.316 5.070 4.843 4.635 4.442 4.263 4097 3942 13.590 12.462 11 470 10.594 9.818 9.129 8.514 7.963 7.469 7025 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4.460 4279 4.110 3.954 14.029 12821 11.764 10.836 10017 9.292 8.649 8.075 7.562 7.102 6.687 6.312 5.973 5.665 5.384 5.127 4.891 4.675 4.476 4292 4.121 3.963 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6011 5.696 5410 5.149 4.909 4.690 4.488 4302 4.130 3.970 14.857 13.489 12.303 11.272 10.371 9.580 8.266 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4.499 | 4311 4.137 3.976 6434 15.247 13,799 12.550 11.469 10.529 9.707 8.348 7.784 7.283 6.835 6073 5.746 5451 5.182 4.937 4.713 4507 4.318 4.143 3.981 8422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 | 5.195 4.948 4.721 4314 4323 4.147 3.985 8.488 7.896 7.372 6.906 6491 6.118 5.783 5480 5.206 4.956 4.728 4.520 4.328 4.151 3.988 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5492 5.215 4.964 4.734 4524 4.332 4.154 3.990 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4.157 3992 6.551 4.975 6.166 5.820 5.510 5.229 4.743 4531 4.337 4.159 3.994 6.566 6.177 5.829 5.517 5.235 4.979 4.746 4534 4339 4.160 3.995 4.997 4.760 4544 4.347 4.166 3.999 6.642 6.233 5.871 5.548 5.258 12% 13% 14% 15% 16% 17% 18% 19% 20% 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.340 0.833 1.736 1.713 1690 1.668 1.647 1.626 1.605 1.585 1566 1547 1528 21% 22% 23% 24% 25% 0.826 0.820 0813 0306 0.800 1.509 1492 1474 1457 1440