Amy Applegate is 60 years old and has been asked to accept early retirement from her company. The company has offered three alternative compensation packages to induce Amy to retire: (1) $400,000 cash payment to be paid immediately (2) A 15-year annuity of $40,000 beginning immediately (3) A 15-year annuity of $45,000 beginning at age 65. Which alternative should Amy choose assuming that she is able to invest the funds at a 6% rate?