Suppose you have won a prize in a lottery. From the following prizes, you select the one with the largest present value (i.e. value now). Assuming an interest rate of 10% per annum compounded annually, you will choose

a. A perpetuity of $100 per year to be made to you one year from now

b. an annuity of 5 yearly payments of $250 with the first payment to be made one year from now

c. a perpetuity of $100, with the first payment made to you immediately

d. an annuity of 5 yearly payments of $250 with the first payment made immediately