You can choose any one of the following prizes. If your discount rate is 10% (annual compounding), which is themost valuable prize?

• A.A lump sum payment of $10,000 today.
• B.A lump-sum payment of $25,000 at the end of 10 years.
• C.$2,600 at the end of each year for 5 years
• D.$1,000 at the end of each year forever (inperpetuity).
• E.$530 next year and increasing thereafter by 5% ayear forever (in perpetuity).