Principles of Finance

As a winner of a lottery you can choose one of the following prizes:
1) £1 million now.
2) £1.7 million at the end of five years.
3) £135,000 a year for ever, starting in one year.
4) £200,000 for each of the next ten years, starting in one year.
If the time value of money is 9 per cent, which is the most valuable prize?
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