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