Ruth Nail recieves two offers for her seaside home. The first offer is for $1 million today. The second offer is for an owner-financed sale with annual payments as follows:

Year Payment

0 (Today) $200,000

1 200,000

2 200,000

3 200,000

4 200,000

5 300,000

Assuming that Ruth earns a return of 8% on her investments, which offer should she take?