14) You win an OLG scratch lottery today and are presented with the following three options to receive your prize. (6 marks total)

Option A: $11,000 end of quarter payments for 10 years.

Option B: A lump sum payment of $170,000 today and another lump sum payment of $250,000 in 2 years from today

Option C: $4,900 beginning of the month payments for 12 years BUT starting in exactly 8 years from today. (Deferred Annuity)

Discount the Cash Flows (DCF) of each one to determine which one is the highest, if interest rates are 4% compounded annually?

14a) DCF for Option A

14b) DCF for Option B

14c) DCF for Option C