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Which option is better: receive $100,000 now or $30,000, $20,000, $34,000, $16,000, and $25,000, respectively, over the next five years? The cash flows are at

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Which option is better: receive $100,000 now or $30,000, $20,000, $34,000, $16,000, and $25,000, respectively, over the next five years? The cash flows are at the end of each year except for $100,000. 5 (Click the icon to view Present Value of $1 table.) 5 (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Read the requirements. Requirement 1. Assuming a 5% interest rate, which investment opportunity would you choose? (If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round your final answer to the nearest whole dollar.) The present value of the five payments is $ L . Since the present value of the five payments is one payment of $100,000, you should choose the option with O than the Requirement 2. If you could earn 6%, would your choice change? (If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round your final answer to the nearest whole dollar.) . Since the present value of the five If you could earn 6%, the present value of the five payments would be $ payments is | than the one payment of $100,000, you should choose the option with Requirement 3. Assuming a 6% interest rate, what would the cash flow in year 5 have to be in order for you to be indifferent to the two plans? (If using present value tables, use factor amounts rounded to three decimal places, X.XXX. Round your final answer to the nearest whole dollar.) If you could earn 6%, the cash flow in year 5 would have to be $ for you to be indifferent to the two plans

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