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): Use PV table for $1 and Present Value of Ordinary Annuity of $1 table

1. $8,000 per year at the end of each of the next eight years

2. $49,950 (lump sum) now

3. $100,050 (lump sum) eight years from now

Requirements:

1.	Calculate the present value of each scenario using an 8 % discount rate. Which scenario yields the highest present value? Round to the nearest whole dollar.
2.	Would your preference change if you used a 10 % discount rate?