A company has purchased goods on invoice from a supplier. The following alternatives are offered for payment:

1) An upfront payment of $30,000 today.

2) A lump sum payment of $40,000 due in three years’ time.

3) A payment plan of $920 per month paid at the end of each month for three years.

4) A payment plan of $210 per month paid at the end of the month forever.

Assume the interest rate is 8% per annum and that interest is compounded monthly for all alternatives.

Which payment option should the company accept?