please show work as well

(Comprehensive time value of money) Dr. Harold Wolf of Medical Rescarch Corporation (MRC) wis thrilied with the response he had received from drug companies for his intest discovery, a unique electronic stimulator that reduces the pain from arthritis. The process hind yet to pass rigoroas Federal Drug Administration (FDA) tenting and was still in the carly stages of development, but the interest was intense. He received the three offers described in the following paragraph. (A 10 pereent interest rate should be used throughout this analysis unless otherwise specificd.) ODer I. $1,000,000 now plus $200,000 from year 6 through 15. Also, if the product did over $100 million in cumulative rales by the end of year 15, he would receive an additional $3,000,000. De. Wolf thought there was a 70 percent probability this would happen. Ofer II Thirty pereent of the buyer's gross profit on the product for the next four years. The bayer in this case was Zbey Pharmaceutical. Zbay's gross profit margin was 60 percent. Sales in year 1 were projected to be $2 million and then expected to grow by 40 percent per year. OVer III A trust fand would be set up for the next eight years. At the end of that period, Dr. Wolf would receive the procoeds (and discount them back to the present at 10 percent). The trust fund called for semiannual payments for the next eight years of $200,000 (a total of $400,000 per year). The payments woald start immediately. Since the payments are coming at the beginning of each period instead of the end. this is an ansuity due. Assume the annual interest rate on this annuity is 10 percent annually ( 5 percent semiannually). Determine the present value of the trust fund's final value. (Hint See the section "Annuities Due.") Required: Find the present value of each of the three offers and indicate which one has the highest present value