Annuity Question!!!!!?

There's a problem i was looking at surrounded by a Business mat textbook:

" As a settlement for an insurance claim, Craig was offered one of two choices. He could any accept a lump-sum amount of $5000 immediately, or accept quarterly payments of $145 for the subsequent 10 years. If the money is placed into a trust fund earning 3.95% compounded semi-annually, which is the better chance and by how much?"

Now the answer at the back of the book shows that it's better by $223.27 , but it doesn't let somebody know what option is better by that amount, taking the $5000 or accepting payments.
How they get $223.27 is by calculating the present value of the $145 payments ( which is $4,776.73) and subtracting that from $5000. So i be just wondering if the $223.27 imply to the $5000 option consequently how does that make it a better one than accepting $145 payments?? Wouldn't payments of $145 over 40 period be better since the total payments would amount to over $5000 at the end of the 10 yr interval?? Plz help :(

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Answers:    Since the present expediency of the stream of payments in 4776 and the lump sum is 5000 it is better at present to filch the lump sum.

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