1. Bingo Starr just won an acclaimed award for his drumming abilities. He has three options to collect his prize: - Option 1: He can collect his prize as a $1,000,000 cash payment now - Option 2: He can collect his prize as a $1,500,000 cash payment in five years - Option 3: He can collect his prize as an ordinary annuity of $175,000 each year for the next 8 years - Option 4: He can collect his prize as a stream of uneven end-of-year cash payments corresponding to the table below. End of year Cash flows (option 4) 1 $300,000 2 $400,000 3 $600,000

End of year	Cash flows (option 4)
1	$300,000
2	$400,000
3	$600,000

Bingo can earn 9% interest compounded annually on his investments and he would like to select the option with the highest value. Evaluate each of the options and indicate which is best for Bingo. Show your work.