Your rich uncle has offered you one of the following four alternatives:

• $10,000 right now

• $2,000 at the end of each of the next eight years;

• $24,000 at the end of eight years.

• $1,000 a year forever starting in one year.

Assuming you can earn 9.5% compounded annually, rank the four alternatives from most to least attractive in terms of their value today. If your uncle is willing to give you the $2,000 a year at the beginning of each year instead of the end of each year, does this change your answer?