Your grandfather has offered you a choice of one of the three following alternatives: $6,500 now $1,750 a year for seven years; or $27,000 at the end of seven years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. Assuming you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) $ Present Value 6,500 $ 6,500.00 1,750 $ 8,519.73 27,000 $ 13,855.27 $ 4-2 Which alternative should you choose? $27,000 received at end of seven years O $1,750 received each year for seven years O $6,500 received now b-1. If you could earn 11 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) $ $ Present Value 6,500 $ 6,500 1,750 $ 8,246.34 27,000 $ 13,004.78 $ b-2 Which alternative should you choose? $27.000 received at end of seven years