(Solution) - On January 1 2016 Chen Yu s Office Supply Store plans -(2025 Original AI-Free Solution)

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On January 1, 2016, Chen Yu's Office Supply Store plans to remodel the store and install new display cases. Chen has the following options of payment. Chen's interest rate is 8%.
a. Pay $180,000 on January 1, 2016.
b. Pay $196,200 on January 1, 2017.
c. Pay $220,500 on January 1, 2018.
d. Make four annual payments of $55,000 beginning on December 31, 2016.
Required
Which option should he choose?