S-F:14A-13 Determining present value (Learning Objective 7) Appendix 14A Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $8,750 per year at the end of each of the next six years 2. $49,650 (lump sum) now 3. $100,450 (lump sum) six years from now Requirements 1. Calculate the present value of each scenario using a 6% discount rate. Which scenario yields the highest present value? Round to the nearest dollar. 2. Would your preference change if you used a 12% discount rate? 4-40