Problem 5-8 (Algo) Deferred annuities [LO5-8] Shuai is 53 years old and has been asked to accept early retirement from his company. The company offered Shuai three alternative compensation packages to induce Shuai to retire: 1. $225,000 cash payment to be paid immediately. 2. A 21-year annuity of $21,000 beginning immediately. 3. A 10-year annuity of $70,000 beginning on July 1 of the year Shuai reaches age 63 (after 10 years). Required: Determine the present value of each alternative, assuming that Shuai is able to invest funds at a 8% rate. Which alternative should he choose? Note: Round your final answers to nearest whole dollar amount. Use tables, Excel, or a financial calculator. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Alternative 1 2 3 Shuai should choose PV