Q5. As a winner of a lottery you can choose one of the following prizes: 1) 20 million now. 2) 30 million at the end of six years. 3) 1.6 million a year forever, starting in one year. 4) 3 million for each of the next ten years, starting in one year. If the discount rate is 8 per cent, which is the most valuable prize? Q6. What is the present value of 100,000 to be received in ten years' time when the interest rate (nominal annual) is 12 per cent and (a) annual discounting is used? (b) semi-annual discounting is used