Assume a 0.10 interest rate (you can borrow and lend at that rate). Specify which you would prefer:

a. $10,000 in cash or $1,000 per year for perpetuity (first payment received at the end of the first period).

b. $10,000 in cash or $1,100 per year for perpetuity (first payment received at the end of the first period).

c. $10,000 in cash or $900 per year for perpetuity (first payment received at the beginning of the first period).