Problem 1: Finance in Perpetuity You are offered one of the following two options for free. Option A includes a fixed cash flow of 250$ every year forever that starts right now (first payment at the end of this year (t=1) ). Option B includes a fixed cash flow of 250$ every year forever, but it starts a year later (first payment at the end of the next year (t=2)). Interest rates are at 8% per year for every maturity. 1. What is the present value of Option A when it starts (at t=0) ? 2. What is the present value of Option B when it starts (at t=1) ? 3. Which one should you pick and why