Time value comparisons of single amountsPersonal Finance ProblemIn exchange for a $20,000 payment today, a well-known company will allow you to choose one of the alternatives shown in the following table: Your opportunity cost is 11%.

Alternative

Single amount

A $24,500 at the end of 3 years B $53,000 at the end of 9 years C $197,000 at the end of 20 years

a.Find the value today of each alternative.

b.Are all the alternatives acceptable long dash that is, worth at least $20,000 today?

c.Which alternative, if any, will you take?