The roofing company has offered a small firm two options to pay for needed roof repairs. Option 1 involves a payment of $2,500 as soon as the job is finished, say today. Option 2 allows the firm to defer payment for 5 years, after which it must make a single payment of $5,000. If the interest rate is %16 per year, find the value of P for each option and select the one with the smallest value of P.