General situation: Your boss tells you that theorganization has $4500 available.

General situation: Your boss tells you that theorganization has $4500 available. The interest rate formoney accounts (e.g. demand deposits savings money market) is 1%compounded annually..a. There are two other options available. Given thefollowing cash flow in two investment options what is the presentvalue of each option? Be sure to explain your rationale forthe interest rate that you chose to use.Option 1 Option 2$5000 $7000$6000 $8000$12000 $10000$13000 $11000$15000 $11500.b. Option 1 requires an initial investment of $3500 whileoption 2 requires $4000. Of course we would deposit theavailable funds in any account. What is the net present valueof each option?.c. What do you recommend to your boss? Be sure to explainyour rationale.