Value of a single amount versus a mixed streamPersonal finance problemGina Vitale has just contracted to sell a small parcel of land that she inherited a few days ago. The buyer is willing to pay $18,270 at the closing of the transaction or will pay the amounts shown in the following table, at the beginning of each of the next five years. Because Gina doesn't really need the money today, she plans to let it accumulate in an account that earns 6% annual interest. Given her desire to buy a house at the end of five years after closing on the sale of the lot, she decides to choose the payment alternative long dash $18,270 single amount or the mixed stream of payments in the table long dash that provides the higher future value at the end of 5 years. Which alternative will she choose? The future value, FV Subscript nFVn, of the lump sum deposit is $. (Round to the nearest cent.)

Mixed Stream

Beginning of Year Cash Flow

1 $4,000 2 $8,000 3 $2,000 4 $3,000 5 $7,000