Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose):

1. $7,400 per year at the end of each of the next 8 years

2. $48,750 (lump sum) now

3. $100,250 (lump sum) eight years from now

Requirement 1. Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value?

1-%-1 4 7 0 5 9406 $ 9 72280 6720 98 5 776 55544 33 51 03003 97 38 38406 29 V-8-9 8776 65554 43 es- 85 53633 632 3 7 1 6 1 628 79-9 8877 66555 4 30027 55 2 5 94 06 77 76655 54 99887 776 18 66 55 - 00 136 9 218 5 99888 77776 66 135 7396 0 01246 81370 600 6420 8753 2 2-99999 88888 87 00111 23345 67 3210 98 19 9999 99999 88 % 9 8 7 6 5 12345 67890 12