Assuming you can earn a 5% return, which of the following investment options would you prefer? (Show calculations.)

Option 1: Receive $120,000 today.

Option 2: Receive $160,000 in five years time.

Option 3: Receive $35,000 at the end of each of the next four years.

Would your answer change if you could earn an 8% return? If your answer changes, why did this happen?