PLEASE CALCULATE YELLOW PARTS

Inflation a. Your Mother is retiring thisyear. She has an option to take her retirement in different options. Analyze which option would be best. There are 3 options a. Receive a lump sum of $1,200,000 b. Receive $87,000 per year for the next 25 years c. Receive $12,500 per month for the next15 years Impilation is currently at 3.20% per year andis expeded to remain at that level for the forseeable future The real MARR without inflation is 1.85% per year Which of the scenarios should your Mother take to maximize NPV? ? i 1.85% inflation 3.20% if 5.11% a. NPV = ? b. NPV = ? NPV=