After completing a long and successful career as senior vice-president for a large bank, you are preparing for retirement. After visiting the human resources office, you have found that you have several retirement options: (1) you can receive an immediate cash payment of \(\$ 600,000\), (2) you can receive \(\$ 60,000\) per year for life (you have a life expectancy of 20 years), or (3) you can receive \(\$ 50,000\) per year for 10 years and then \(\$ 70,000\) per year for life (this option is intended to give you some protection against inflation). You have determined that you can earn 8 percent compounded annually on your investments. Which option do you prefer and why?