The owner of a patent is offered two alternative settlements for the rights to his patent as follows:

Alternative A: $10,000 payment now, plus $20,000 ten years from now

Alternative B: $2,000 per year for each of the next five years with payments of $3,000, $4,000,

$5,000, $6,000 and $7,000 respectively for years six through ten.

If the patent owner considers that he has investment opportunities for the money that will earn 15% per

year before tax considerations, which alternative should he select