You Just Received an Insurance Settlement Offer Related to an Accident

You just received an insurance settlement offer related to an accident you had four years ago. The offer gives you a choice of one of the following three offers:

Option A: $6,500 on the first day of each year for 40 years
Option B: $610 on the first day of each month for 25 years
Option C: $75,000 as a lump sum payment today

You can earn 8.75% on your investments. You do not care if you personally receive the funds or if they are paid to your heirs should you die within the settlement period. Which one of the following statements is correct given this information?

A) Option C is the best choice since you can earn 8.75% on the entire lump sum starting immediately.
B) Option B is the best choice since it offers the largest number of payments.
C) Option A is the best choice since it has the largest present value.
D) Option B is the best choice since it has the largest present value.
E) You are indifferent to the three options as they are all equal in value to you.