You have the choice receiving anyone of the following three alternative series of payments:

a$)20$ annual payments $($beginning today$)$ of $$100,000)$

b$)40$ year annuity $($beginning $1$ year from today$),$ growing at $4\%$ per year, in which the first

payment is $$50,000$

c$)$ Perpetuity, beginning $4$ years from today, in which the first payment is $$40,000$ and grows at

$3\%$

Assuming that there are no taxes on the cash flows and that all cash flows are discounted or

compounded at $10\%,$ which alternative would you choose? $($Your answer must include a "value"

for each of the three alternatives to support your answer.$)$