Your grandfather has offered you a choice of one of the three following alternatives: $12,000 now, $6,000 a year for six years, or $76,000 at the end of six 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: Present Value 512000 50000 $78000 a-2. Which alternative should you choose? $76,000 received at end of six years * $6,000 received each year for six years $12,000 received now b-l. If you could earn 11 percent annually, compute the present value of each $8000 alternative: b-2. Which alternative should you choose? $76,000 received at end of six years $6,000 received each year for six years Agente $12,000 received now 24 No 70% O2 0 90 0.9 0.6 0.952 0943 0335 0. 0 0297 070707 0.626 0.57 0.497044 0.19 0.124 .104 0520 0 673 0.554 0.456 0377 0312 0258 0215 0.17 01005100478 075 0295 023301840146 0.115 0742 020412010001010131 0.000 .075 06723203970200120022003200400172 0.60 032 0.22 0141 007 0054 0 034 01021 001 0.00 0.00 0.003 15 16 17 18 20 25 30 35 40% G.165 0.133 DOBE 0.410 0.0000336 0354 01270306 030 0370 02331 025 0.266 0352 0:335 0.262 0296 0229 021019 02490323 6 0123 0005 0.06 0.0 G037 00 0.00 COCO1011021000064 0. 00200011 0015008 0012 0.005 DOOS 0.00 DOOS 2009 0.003 0.002 0002 200 0.001 0.001 0.00 0.0 0. 03 0. 01 0.051004303700310 026 0012 0. 0 002 0.0010 000 004 0 0006001 001100100 00150012 000001 0000 5 004 0000 1002 1001000100000 010020001 00000000000