A financial fairy godmother wants you to be financially independent. She offers you a choice out ...

A financial fairy godmother wants you to be financially independent. She offers you a choice out of 5 financial alternative products, being:

1. An amount of 7 million today.

2. An amount of 650.000 yearly, forever.

3. Three amounts of 3.300.000, the 1^st after 2 years, the 2^nd after 4 years and the last after 6 years.

4. A yearly amount of 1.600.000, 6 years in a row, the 1^st after 1 year from now.

5. A yearly amount of 1.400.000, 6 years in a row, the 1^st today, the 2^nd 1 year from now and so on.

Your required rate of return is 10%.

Taking into account the time value of money, please answer the following questions:

What is the present value of alternative (5)?