A new finance graduate has just commenced employment. The graduate plans to take the job for five years before seeking another position, and has been offered a choice of the following salary packages. The appropriate discount rate is 10%. Which is the preferred salary package in present value terms?

a:A commission of 30% of sales. Yearly commissions are expected to be,

Year 1$45,000; Year 2$52,500;Year 3$54,000;Year 4$ 60,000;Year 5$63,000

b:$25000 salary each year (five end of year payments) plus a sum of $125000 at end of year five.

c:Annual salary of $56,700 with payments commencing in one year and five payments in total

d:$100,000 today plus an annual salary of $25,000. The first annual payment is today. (A total of six equal salary payments).

e:$210,000 today and no further income