S. Ken Flint retired as president of Colour Tile Company, but he is currently on a consulting contract for $61,000 per year for the next 14 years. Assume Mr. Flints opportunity cost (potential return) is 8 percent. Use Appendix B and Appendix D. (Round "PV Factor" to 3 decimal places. Round the final answers to the nearest whole dollar.)

a. What is the present value of his consulting contract?

Present value $

b. Assuming Mr. Flint will not retire for two more years and will not start to receive his 14 payments until the end of the third year, what would be the value of his deferred annuity?

Present value $

c. Recalculate part a assuming the contract stipulates that payments are to be made at the beginning of each year.

Present value $