Garland Inc

Multiple Choice

Garland Inc. offers a new employee a single-sum signing bonus at the date of employment, June 1, 2018. Alternatively, the employee can receive $39,000 at the date of employment plus $10,000 each June 1 for five years, beginning in 2022. Assuming the employee's time value of money is 9% annually, what single amount at the employment date would make the options equally desirable?

A) $44,035.
B) $40,855.
C) $69,035.
D) $65,855.