On July 7, 2014, Lawrence Company sold some machinery to Johnson Construction Company. The sales contract requires Johnson to pay five equal annual payments of $75,000 each, beginning on July 7, 2014. What present value concept is most appropriate for this situation?

A: present value of an ordinary annuity of $1 for five periods

B: present value of an annuity due of $1 for five periods

C: future value of an annuity of $1 for five periods

D: future value of $1 for five periods