Answer each of the following independent questions.Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1)$66,000 cash immediately, (2) $22,000 cash immediately and a six-period annuity of $7,800 beginning oneyear from today, or (3) a six-period annuity of $13,000 beginning one year from today. (FV of $1,PV of $1FVA of $1,PVA of $1,FVAD of $1andPVAD of $1)(Use appropriate factor(s) from the tablesprovided.)1-a.Assuming an interest rate of 5%, determine the PV value for the above options.,
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1-b.Which option should Alex choose?
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2.The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December31, 2025. Weimer will make annual deposits of $120,000 into a special bank account at the end of eachof 10 years beginning December 31, 2016. Assuming that the bank account pays 6% interest