Edge Finance are advertising a magazine subscription. All new subscribers have the opportunity to go in a draw for a prize.

The prize is:

$50,000 cash:

or 5 yearly payments of $11,500, the first payment due at the end of the month (assume monthly compounding); or $1,500 per month for 3 years, the first payment due at the end of the month (assume monthly compounding).

Current interest rates stand at 8% per year.

Based on present values, which would you prefer: (a), (b) or (c)?