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 $137,000 immediately as her full retirement benefit. Under the second option, she would receive $26,000 each year for seven years plus a lump-sum payment of $56,000 at the end of the seven-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%.