B: present value = 3+3 (P/F, 10%, 1)+4 (P/A, 10%, 3) * (P/F, 10%, 2).

The present value is calculated according to the annuity first, and then compound interest.

For example:

Paying off in three years is the present value of the early annuity, so it can be obtained according to the formula.

10*( 1+6%)^3= 1 1.9 10 16

3*( 1+6%)^3+4( 1+6%)^2+4( 1+6%)= 12.307448

Scheme a is superior to scheme B.

Extended data:

First, the immediate annuity is converted into ordinary annuity. The conversion method is as follows: when calculating the present value, it is assumed that there is no equal receipt and payment amount at time 0 (1 beginning), which is converted into the present value problem of ordinary annuity in n- 1 period, and then the ordinary annuity present value of the number of periods in n- 1 period is calculated, and then the equivalent amount in 1 beginning is calculated.

Ordinary annuity present value of n- 1 period =A×(P/A, I, N- 1)N annuity present value = N- 1 period ordinary annuity present value +A =A×(P/A, I, n-1)+a.

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