One of your clients has come to you for guidance on a financial matter. He is selling his business and needs help in understanding the purchase options being offered by a prospective purchaser. The options are (i) $10 million dollars payable immediately. (ii) Five equal annual payments of $2.5 million each with the first payment made immediately. (iii) Five unequal annual payments with a first payment of $2 million immediately, and four others, each being 8% larger than the previous one. He wants you to help him determine which offer was worth the most. Assume interest rates average 10% per annum for the five year period. (i) What is the present value of option 1 ? (5 marks) (ii) What is the present value of option 2 ? (10 marks) (iii) What is the present value of option 3 ? (10 marks)