Question $2$

You are considering investing in two different investment options. The first option offers no return for the first three years, but afterward it offers to pay you $$20,000$ per year for four years. The second option offers to pay you $$20,000$ per year for three years and $$30,000$ in the fourth year. All payments are made at year$-$end. If a discount rate of $8\%$ per annum is assumed, determine by using the present value the option that offers you a higher return.