Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received.

Option $1$: Julie would receive a lump sum of $$128,000$ immediately as her full retirement benefit. $($HINT: You don't need to do a

present value calculation for this option because it is already in today's dollars.$)$

Option $2$: Julie would receive $$15,000$ each year for $10$ years plus a lump$-$sum payment of $$54,000$ at the end of the $10-$year period.

$($HINT: You need to use both tables to solve this problem. Get the present value of the annuity and the present value of the one time

payment and add them together.$)$

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 $11\%.$

$1-$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 $1A$

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.$)$