Your friend promises you a perpetuity of $1.5 every year. The first payment occurs in year 1, the interest rate is 10%, and there is no payment in year 10, because your friend will be short of money in that year. Except for year 10, the payment is always $1.5 in other year. Which of the following is right about its present value at time zero?

a.

$10.42

b.

$15.58

c.

$14.42

d.

$15.00

e.

None of the above