You have just won a lottery, which offers a choice in how you may receive your prize.If the interest rate is 10% per annum, compounded annually, which of the following prizes has the highest present value?

a. a perpetuity of $250,000 per year starting one year from now

b. $3,000,000 at the end of five years

c. an ordinary annuity of $300 000 per year for each of the next 10 years (starting one year from now)

d. $2,000,000 immediately

e.$3,500,000 at the end of nine years