Comparison of Alternatives On January 1, 2010, Chen Yus Office Supply Store plans to remodel the store

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Comparison of Alternatives On January 1, 2010, Chen Yu’s Office Supply Store plans to remodel the store and install new display cases. Chen has the following options of payment. Chen’s interest rate is 8%.
a. Pay $180,000 on January 1, 2010.
b. Pay $196,200 on January 1, 2011.
c. Pay $220,500 on January 1, 2012.
d. Make four annual payments of $55,000 beginning on December 31, 2010.

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Which option should he choose?

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