ou are looking to invest $200,000. You have 3 possible investment options:

(I) A lump sum of $620,000 payable in 10 years;

(II) An annuity paying $29,300 at the end of every year for 15 years;

(III) A perpetuity paying $23,800 at the end of each year.

Using the net present value method, with a cost of capital of j₁ = 12%, which option should be chosen, if any?

• A.

  None of them

• B.

  I

• C.

  III

• D.

  II