Suppose you have just won the lottery and must choose one of the following prizes. The appropriate annual discount rate is 6%. Which prize has the greatest present value? (Show the calculations justifying your answer.) Calculate value of each prize and make your choice.

(a) [7 points] $200,000 paid once each year for a total of ten years with the first payment arriving today.

(b) [7 points] Annual payments of $120,000 paid once each year forever, with the first payment starting exactly 3 years from today (i.e., starting at the end of year 3)

(c) [6 points] Monthly payments of $10,000 paid each month forever, with the first payment starting one month from now (i.e., starting at the end of the first month)