4. You just struck oil in the middle of your hay field. An oil company has offered to pay you a perpetual (never-ending) annuity of $15,000 per year for the rights.

a. What is the value of the offer, assuming a 6% discount rate?

b. You would prefer to receive your payments faster and propose a 10-year series of payments. How large would each of the equal payments be to equal the present value of the offer in part (a)? (Once again, assume a 6% discount rate.)

c. The oil company counters with an offer of $30,000 per year for the next ten years plus a $1,000 perpetual (never-ending) annuity thereafter. What is the present value of that offer? (Once again, assume a 6% discount rate.)