7 Present Value. Suppose that you have won a grand prize draw competition which offers you the opportunity to receive your winnings in the form of either £30,000 at the end of each year for the next 30 years or as a lump sum of £500,000 to be given to you immediately. Your new found accountant friend has just told you that you could expect to earn a return of 5 per cent per year over the next 30 years. Ignoring taxation and inflation (and life expectancy), which option would you choose and why?