Julie just retired and has two options for receiving her retirement benefits. Under the first option, she would immediately receive a lump sum of $$150,000.$ Under the second option, she would receive $$14,000$ each year for $20$ years plus a lump$-$sum payment of $$60,000$ at the end of the $20-$ year period.

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 $12\%.$

$1-b.$ If she can invest money at $12\%,$ which option should she choose?

Complete this question by entering your answers in the tabs below.

Required $1A$

Calculate the present value for the following assuming that the money can be invested at $12\%.$

Note: Round your final answers to the nearest whole dollar amount.

$\backslash$table$[[,$Option $1,$Option $2],[$Present value,,$]]$