You have done a great job, and your boss offers you a few different possible gifts. Using a discount rate of 10%, which present would you choose?

Select one:

a.A growing perpetuity that pays $2000 each year starting one year from now. The perpetuity grows at a rate of 1.5% per year.

b.All the presents stated are equally good!

c.One payment of $47,500 received today

d.$8,000 per year for 10 years, starting two year from now

e.A single payment of $75,000 received in 5 years