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$)$:

$$7,750$ a year at the end of each of the next eight years

$$48,750($lump sum$)$ now

$$99,850($lump sum$)$ eight years from now

Calculate the present value of each scenario using an $8\%$ interest rate. Which scenario yields the highest present value? Would your preference

change if you used a $12\%$ interest rate?

$($Click the icon to view the present value annuity factor table.$),($Click the icon to view the present value factor table.$)$

$($Click the icon to view the future value annuity factor table.$)$

Using an $8\%$ interest rate, calculate the present values for each scenario. $($Round the amounts to the nearest dollar.$)$

Present value of Scenario $1$