Compare Alternatives Jane Bauer has won the lottery and has four options for receiving her winnings:

1. Receive $100,000 at the beginning of the current year 2. Receive $108,000 at the end of the year 3. Receive $20,000 at the end of each year for eight years 4. Receive $10,000 at the end of each year for 30 years Jane can invest her winnings at an interest rate of 8% compounded annually at a major bank.

Which of the payment options should Jane choose?