You can choose one of the following prizes:(a) $100,000 now(b) $170,000 at the end of 4 years(c) $11,600 a year forever(d) $6,000 next year and increasing thereafter by 5% a year forever(e) $18,000 per year starting next year for 10 years(f) $20,000 next year, increasing thereafter by 3% a year and stopping after the 7th paymentIf the interest rate is 12%, use the present value to find which prize is the most valuable.Group of answer choices$18,000 per year starting next year for 10 years$170,000 at the end of 4 years$6,000 next year and increasing thereafter by 5% a year forever$100,000 now$20,000 next year, increasing thereafter by 3% a year and stopping after the 7th payment$11,600 a year forever

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To find the most valuable prize based on the present value PV at an interest rate of 12 we need to calculate the present value of each option We will ... View the full answer