As a winner of a breakfast cereal competition you can


As a winner of a Breakfast cereal competition, you can choose one of the following prizes:

  1. $100,000 now
  2. $180,000 at the end of 5 years
  3. $11,400 a year forever 
  4. $19,000 for each of 10 years
  5. $6500 next year and increasing thereafter by 5% a year forever. 

If the interest rate is 12% which is the most valuable prize?

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Business Management: As a winner of a breakfast cereal competition you can
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