Suppose you are given the following payment options for your investment:

(i) $325,000 to received after 5 years

(ii) $52,000 paid annually for the next 5 years.

a. Which alternative would be the best option, if the interest rate per annum is 12% per year for the entire period, continuously compounded? (Answer must be justified.)

b. Which alternative would be the best option, if the interest rate per annum is 8% per year for the entire period, continuously compounded? (Answer must be justified.)