A 50- year- old employee of IQ Entertainment was asked to select one of three potential early retirement packages.
Package A: $ 60,000 received today.
Package B: $ 10,000 to be received each year for the next eight years.
Package C: $ 40,000 received today and $ 5,000 per year for five years beginning at age 55. Which retirement package should the employee select if he can invest funds at 5%, compounded annually, assuming all retirement payments are received at the beginning of the year?