Captain America, Iron Man and the Black Widow each have an offer for the next movie that they would like you to analyze for them and determine who will be getting the best deal.

Captain America will receive $200,000 per year starting on his 35^th birthday and ending on his 60^th birthday (his last payment will be on his 60^th birthday). He then will receive $400,000 every six months starting six months after the last payment of $200,000 and ending on his 89^th birthday. He will also receive $16,000,000 on his 90^th birthday and another $16,000,000 on his 95^th birthday.

Iron Man has been offered an investment that will pay him $250,000 per year starting on his 35^th birthday and continuing until his 60^th birthday (his last payment of $250,000 will occur on his 60^th birthday). He then will receive $40,000 every six months, with the first of these coming six months after his last payment of $250,000 and continuing until his 80^th birthday (that will be his last payment of $40,000). Finally he will receive $24,000,000 one year after his last payment of $40,000.

Black Widow is offered an investment that will pay her $120,000 every six months starting on her 35^th birthday and ending six months before her 65^th birthday. She then will receive $300,000 every other year for ten years (5 payments) with the first of these coming six months after her last payment of $120,000. Black Widow would also receive $1,000,000 one year after her last payment of $300,000.

Assuming each is celebrating their 32^nd birthday today and they have a 12% (semi-annual) opportunity cost, which of them has the best offer? SHOW ALL WORK as presented in lectures and solutions. Please show all work. Make your decision using the present value concept.