Tyson Trucking Won a Settlement in a Lawsuit and Was $\quad \$ 150,000$

Essay

Tyson Trucking won a settlement in a lawsuit and was offered four different payment alternatives by the defendant's insurance company.The interest rate is 6%.Ignoring tax considerations,which of the following four alternatives has the highest present value? Support your answer with the appropriate calculations.
I) $\quad \$ 150,000$ now

II) $\quad \$ 45,000$ per year for the next four years (payment made at the end of the year)

III) $\quad \$ 5,000$ now and then $\$ 20,000$ per year for the next ten years (payment made at the end of the year)

IV) $\quad \$ 5,000$ now and then $\$ 5,000$ per year for the next ten years (payment made at the end of the year) plus a lump-sum payment of $\$ 200,000$ at the end of the eleventh year