I have $300,000 to invest after winning a lottery and have the following offers from various people.
1. $50,000 per year for 10 years.
2. $400,000 to be paid on this same date in the year of the next U.S. presidential election.
3. $20,000 per year to be paid the rest of my life.
4. A friend that has no money says he wrote me a check for $1,000,000 and put it in the mail several years ago and wants to know if I received it.
5. $500,000 to be paid on this same date in 5 years.
I want to make 14 percent annual return on this money.After judging uncertainty which offer should I take? Explain why.