Wilcox Corporation won a settlement in a lawsuit and was offered four different payment alternatives by the defendant's insurance company. A review of interest rates indicates that 8% is appropriate for analyzing this situation. Ignoring any tax considerations, which one of the following four alternatives should the controller recommend to Wilcox management?

Select one:

a. $5,000 now and $5,000 per year at the end of each of the next nine years, plus a lump-sum payment of $200,000 at the end of the tenth year

b. $40,000 per year at the end of each of the next four years

c. $135,000 now

d. $5,000 now and $20,000 per year at the end of each of the next ten years