Nelson Company owes money to Nash Company for the purchase of equipment. Nash Company has given Nelson the following payment options:

1. I. Immediate payment in full of $32,000.
2. II. Annual payments of $13,000 made at the end of each of the next three years.
3. III. A single payment of $42,000 made at the end of three years.

Assume that both Nelson and Nash use a 20% interest rate compounded annually. What option would Nash prefer, and what is the present value of that option?