A) Sally Hamilton has performed well as the chief financial officer of the Maxtech computer company and has earned a bonus. She has a choice among the following three bonus plans:

1) A $50,000 cash bonus paid now

2) A $10,000 annual cash bonus to be paid each year over the next six years, with the first $10,000 paid now.

3) A three-year $22,000 annual cash bonus with the first payment due three from now.

Required : Evaluate the three alternative bonus plans. Sally can earn a 6% annual return on her investments