Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $142,000 immediately as her full retirement benefit. Under the second option, she would receive $21,000 each year for 5 years plus a lump-sum payment of $61,000 at the end of the 5-year period. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: I-a. Calculate the present value for the following assuming that the money can be invested at 14%. I-b. If she can invest money at 14%, which option would you recommend that she accept?

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