Your grandfather has offered you a choice of one of the three following alternatives: $12,000 now; $6,000 a year for six years; or $76,000 at the end of six 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 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

$12,000:

$6,000:

$76,000:

a-2. Which alternative should you choose?

$76,000 received at end of six years

$6,000 received each year for six years

$12,000 received now

b-1. If you could earn 11 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

$12,000:

$6,000:

$76,000

b-2. Which alternative should you choose?

$76,000 received at end of six years

$6,000 received each year for six years

$12,000 received now