Mr$.$ Able owns a parcel of land that a local farmer has offered to rent for the next $20$

years. The farmer has offered to pay $$150,000$ today or an annuity of $$11,000$ at

the end of each of the next $20$ years. Using a required rate of return of $5\%,$ what

option should Mr$.$ Able choose?

a$.$ The annual payment of $$11,000$

b$.$ Lump Sum of $$16,000$

c$.$ Neither one makes economic sense

d$.$ Lump sum up front $($today$)$ of $$150,000$