Garland Inc.offers a new employee a lump-sum signing bonus at the date of employment,June 1,2016.Alternatively,the employee can take $39,000 at the date of employment plus $10,000 each June 1 for five years,beginning in 2020.Assuming the employee's time value of money is 9% annually,what lump sum at employment date would make him indifferent between the two options?
A)$44,035.
B)$40,855.
C)$69,035.
D)$65,855.

Question

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The Answer of Garland Inc.offers a new employee a lump-sum signing bonus at the date of employment,June 1,2016.Alternatively,the employee can take $39,000 at the date of employment plus $10,000 each June 1 for five years,beginning in 2020.Assuming the employee's time value of money is 9% annually,what lump sum at employment date would make him indifferent between the two options?
A)$44,035.
B)$40,855.
C)$69,035.
D)$65,855.