Problem
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 $134,000 immediately as her full retirement benefit. Under the second option, she would receive $28,000 each year for five years plus a lump-sum payment of $53,000 at the end of the five-year period.
Calculate the present value for the following assuming that the money can be invested at 12%.