Which option is better: receive $140,000 now or $35,000, $20,000, $34,000, $51,000, and $40,000, respectively, over the next five years? (Assume the annual payments occur at the end of each year.) Click the icon to view the Present Value of $1 table C ick the icon to view the Pres nt Value of Annuity of $1 table.) Requirements 1. Assuming a 7% interest rate, which investment opportunity would you choose? 2. If you could earn 8%, would your choice change? 3. Assuming an 8% interest rate, what would the cash flow in year 5 have to be in order for you to be indifferent to the two plans? Requirement 1. Assuming a 7% interest rate, whichinvestment opportunity would you choose?! using present value tables, use actor amounts rounded o three dec mal places X X. Round your final answer to the nearest whole dollar. Since the present value of the five payments is a the The present value of the five payments is $ one payment of $140,000, you should choose the cption Requirement 2 f you could earn 8%, would your c oc change? If using present value ables use factor amounts rounded to three decimal places XXXX Round your final answer o the nearest whole dollar. if you could eam 8%, the present value of the five payments would be $ payments is than the one payment of $140,000, you should choose the option with Requirement 3. As su ming an 8% nterest rate what would he cash flow ln year 5 have to be in order or you to be indifferent to he two plans? lf using present value ables use actor amounts rounded o hree dec mal places X If you could earn 8%, the cash flow in year 5 would have to be $ Since the present value of the five X Round your for you to be indifferent to the two plans. Present Value of $1 Present Value of Annuity of $1 Present Value of $1 Present Value of Annuity of $1 Periods! 4% 6% 12% 16% Periods 4% 5% 10% | 12% | 14% 16% 0.952 862 743 0.962 0.952 0.943 0.935 0.926 0.909 0.8930.877 0.862 2 1.886 1.859 1.833 1.8081783 1.736 1.6901.67 1.605 3 2.775 2.723 2.6732.6242.5772487 2.402 2.322 2.246 4 3.630 3.546 3.463.3873.312 3.170 3.037 2.914 2.798 4.4524.3294.212 4.100 3.993 3.7913.605 3.433 3.274 6 5.242 5.076 4.9174.7674.623 4355 4.111 3.889 3.685 6.0025.786 5.582 5.389 5.206 4868 4.564 4.288 4.039 6.733 6.463 6.210 5.971 5.747 5.335 4.9684.639 4344 7.435 7.108 6.802 6.515 6.247 5.759 5.328 4.9464.608 8,111 7.722 7.360 7.024 6.710 6.145 5.650 5.216 4833 8.760 8.30 7.8877.499 7.139 6.495 5.9385.4535.029 0.79 735 0,683 0,822 0.784 0.7470.713 0,681 0.621 0,567 0.5190.476 0.790 0.746 0.7050666 0,630 0.564 0,507 0.4560.410 0.7600.711 0.731 0.677 0.627 0.582 0.703 0.645 0.676 0.614 0.558 0452 0400 0.354 0.540 0467 0404 0.351 0.305 0.308 0.263 0,227 0,623 0.583 0.51 0.592 0.508 0.463 0.2 10 14 10.5639.899 9.295 8.745 8.244 7.367 6.6286.002 575 11.65210.838 10.109447 8.851 7824 6.9746.265 5.669 749 8.201 7.250 6.467 5.818 11.15810.336 9.604 8.3657.366 6.550 5.877 2013.590 12.462 11.47010.594 9.818 8514 7.469 6.623 5.929 118 10.380 9.712 9.108 8.5597.606 6.811 6.142 17 120 6.373 166 11.27410.477 9.763 9.122 8.022 659 11.69010.828 10.059 9.372 134 12.085 18 0.4940.416 0.350 0.296 0.250 0.180 0.130 0.0950.069 Print Done Print Done