7.Silverstone Co. is considering two options for acquiring a new company car. Details on the two options are: Option 1. Lease the car for 4 years at an annual payment of $14,000; an additional...

7.Silverstone Co. is considering two options for acquiring a new company car. Details on the two options are:

Option 1. Lease the car for 4 years at an annual payment of $14,000; an additional $24,000 payment would be required at the end of the lease. The interest rate on this option is 11%.

Option 2. Purchase the car on a 4 year note at an annual payment of $18,000. The interest rate on this option is 11%.

Which option should Silverstone select? Show supporting computations in good form.

8.Your company is "right sizing" and offers you the option of receiving one year's salary of $70,000 today or deferring your severance 20 years and receiving $150,000. Assume a reasonable rate of interest of 8%. Which settlement should you accept? (Ignore any tax consequences.) (Show your work.)