Question 2 of 7 - /0.5 View Policies Current Attempt in Progress Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,679,000, or it can make annual payments of $308,900 for 15 years, each payment due on the last day of the year Click here to view factor tables Which method of payment do you recommend, assuming an expected effective interest rate of 8% during the future period? (Round factor values to 5 decimal places, eg, 1.25124 and final answer to O decimal places, eg, 458,581.) Present Value of annual payments $ Recommended payment method Question 3 of 7 -/1 E View Policies Current Attempt in Progress Morgan Long has just learned he has won a $500,600 prize in the lottery. The lottery has given him two options for receiving the payments. (1) If Morgan takes all the money today, the state and federal governments will deduct taxes at a rate of 46% immediately. (2) Alternatively, the lottery offers Morgan a payout of 20 equal payments of $39.200 with the first payment occurring when Morgan turns in the winning ticket. Morgan will be taxed on each of these payments at a rate of 26% Click here to view factor tables Compute the present value of the cash flows for lump sum payout. (Round factor values to 5 decimal places, es. 1.25124 and final answer to decimal places, es. 458,581.) Lumpsum payout $ Assuming Morgan can earn an 10% rate of return (compounded annually) on any money invested during this period, compute the present value of the cash flows for annuity payout. (Round factor values to 5 decimal places, es, 1.25124 and final answer to decimal places, e8.458,581) Present value of annuity payout $ Which pay out option should he choose? Question 4 of 7 - / 1.5 MI View Policies Current Attempt in Progress Answer each of these unrelated questions. Click here to view factor tables (a) On January 1, 2020, Teal Corporation sold a building that cost $273,840 and that had accumulated depreciation of $109.280 on the date of sale. Teal received as consideration a $263,840 non-interest-bearing note due on January 1, 2023. There was no established exchange price for the building, and the note had no ready market. The prevailing rate of interest for a note of this type on January 1, 2020, was 4%. At what amount should the gain from the sale of the building be reported? (Round factor values to 5 decimal places, es. 1.25124 and final answer to decimal places, eg. 458,581.) The amount of gain should be reported $