Question 2 A) Joseph Buck has recently hired as a financial manager at the JMMB Company. A client is presented with the following options to select the best choice: Choice 1: A gift of $40 000 today as a lump sum. Choice 2: $55 000 is to be paid to the client in 5 annual installments of $11000 at the end of each year of the next 5 years. Choice 3: To receive five equal annual installments of $10 300 each year starting today. If the appropriate investments discount rate is 12%: i) What is the present value of each of the choices? (8 marks) ii) Which alternative would you choose? Explain why? (2 marks) B) Suppose your brother receives an $80 000 loan from JN Bank and he required to payback the loan by making equal annual payments of for 6 years at an interest rate of 9% per annum. i) Compute the annual payment. (5 marks) ii) Create an amortization schedule for the loan (10 marks)