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9) You won 3rd Prize in the Lotto Max Lottery and were offered three (4) choices for your prize OR 3 different ways to receive

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9) You won 3rd Prize in the Lotto Max Lottery and were offered three (4) choices for your prize OR 3 different ways to receive your winnings! Option A is to receive $219,000 today and $300,000 in 3 years from today. Option "B is to receive $217,000 today and end of month payments of $1,400 for 30 years. Option C is to receive $170,000 today and beginning of the month payments of $1,900 for 30 years but starting in 5 years from today. Option D is to receive $570,000 today. Using an interest rate of 4% compounded annually, discount the cash flows (DCF) and determine which option is the highest using this method. (8 marks) a) What is DCF value of option A b) What is the DCF value of option B c) What is the DCF value of option C d) What is the DCF value of option D e) Which is highest and why

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