Determining present value 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): $7,250 per year at the end of each of the next eight years $49,650 (lump sum) now $98,650 (lump sum) eight years from now Requirements Calculate the present value of each scenario using an 8% discount rate. Which scenario yields the highest present value? Round to nearest whole dollar. Would your preference change if you used a 10% discount rate?

Assume you won a million dollars in the Texas Lottery. You have two options: 1) collect S426,000 now or 2) receive $50,000 a year (end-of-year) for the next 20 years. Which option would you opt for assuming a 10% interest rate? Use an Excel formula to justify your choice.

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Your grandfather has offered you a choice of one of the three following alternatives: $10,000 now; $4,800 a year for eight years; or $56,000 at the end of eight 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 9 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)       a-2. Which alternative should you choose?   multiple choice 1 $56,000 received at end of eight years $4,800 received each year for eight years $10,000 received now   b-1. If you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)       b-2. Which alternative should you choose?   multiple choice 2 $56,000 received at end of eight years $4,800 received each year…