You have just been hired as a consultant to help a firm to decide which of three options to take to maximize the value of the firm over the next three years. The following table shows the year-end profits for each option. Interest rates are expected to be stable at 8 percent over the next three years.

Option	Profits in Year 1	Profits in Year 2	Profits in Year 3
A	$70,000	$80,000	$90,000
B	$50,000	$90,000	$100,000
C	$30,000	$100,000	$115,000

a. Discuss the difference in the profits associated with each option. Provide an example of real-world options that might generate such profit streams.

b. Which option has the greatest present value?