You have won a state lottery and have been given some choices as to how you can receive your winnings. Your personal discount rate is 9%.

1. £510,000 today

2. £150,000 a year for 5 years starting in one year

3. £41,000 a year starting in one year and lasting forever

4. £200,000 today and £400,000 in 5 years.

5. £29,000 a year starting in one year and growing at 3% a year forever.

Which do you choose and why? (10)