P5–16 Time value comparisons of single amounts In exchange for a $20,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table. Your opportunity cost is 11%.

a. Find the value today of each alternative.

b. Are all the alternatives acceptable? That is, are they worth $20,000 today?

c. Which alternative, if any, will you take?

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Alternative A B C Single amount $28,500 at end of 3 years $54,000 at end of 9 years $160,000 at end of 20 years