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What option should raymond choose to receive prize

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Raymond has just won a lottery and he has been given the choice to receive the $1 million prize in one of the following ways:

-a one-off cash payment today

-a one-off cash payment of $1.2 million in 5 years time

-An annual payment of $50,000 every year for the rest of his life.Note: the interest rate is 5%

Required:

-Based on a purely financial decision, what option should Raymond choose to receive his prize?

-How would Raymond's age affect the option you recommended in (1)?

Reference no: EM132678503

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