Mr. Kabir inherited the family mini market business and has decided to sell it to a potential local buyer. For this purpose, he got two offers as stated below:

Offer 1: Mr. Kabir will receive RM8,000 at the end of each year forever.

Offer 2: Mr. Kabir will receive RM50,000 at the end of year 1, RM65,000 at the end of year 2, and RM12,000 at the end of each year from year 3 to year 10.

The current market rate of interest for Mr. Kabir is 6% compounded annually.

Calculate the present value of Offer 1 and Offer 2. Which offer should Mr. Kabir choose to sell his mini market business? (5 marks)