You have applied for a job. As part of its evaluation process, you must take an examination of the time value of money analysis covering the following questions. Please show your work including each step by using your calculator OR Excel. (Identify N, I/Y, PV, PMT, and FV)

You have a choice: Option A: You will receive a lump sum of $50,000 at the end of 7 years; OR

Option B: You will receive $25,000 at the end of six years and another $25,000 at the end of 8 years. Assume your opportunity cost of money is 6%. Which option would you choose today?