Moe Szyslak comes to you for financial advice. He is considering adding video games to his tavern to attract more customers. The company that sells the video games has given

Moe a choice of four different payment options. Which of the following four options

would you recommend that Moe choose? Why?

Option l. Pay $5,900 cash immediately.

Option 2.Pay 56,750 cash in one lump sum two years from now.

Option 3. Pay 5800 at the end of each quarter for two years.

Option 4. Pay $1,000 immediately plus $5,250 in one lump sum two years from now.

Moe tells you he can eam 6 percent annual interest, compounded quarterly, on his money.

You have no reason to question his assumption.