20 February 2024

INSTRUCTIONS:

1. Divide the class into groups to analyze the case, The Lottery Winner; Discuss, determine
and justify which of the three options is the best. Consider the subjects introduced during
the Basic Long-Term Financial Concepts discussion in assessing each option. There is a
correct way to determine the best option; This will be discussed in class next session.
However, partial points will be awarded based on how the group evaluates and justifies
each option.
2. Use the remaining time to work on pending deliverables:

a. Case Analysis: Joe’s Restaurant (Group Work)

b. Enrichment Activity: Shady Sam (Individual)

Activities can be accessed via Schoology; Output will be collected on the next session.

CASE ANALYSIS: The Lottery Winner (Group Work)

Mr. Sotto won PHP10 million in the lottery. He was very excited to collect his winnings and had
several plans for his PHP10 million. He would buy his dream house, car, and a lot more. However,
he was very disappointed when the officers from PCSO said that he will not get his PHP10 million
pesos upfront. He, however, has the following options:

• Get 8.1 million upfront

• Receive 1 million every year for 10 years
• Receive 1.8 million every year for 5 years

The current government bonds have a yield of 5% per annum. Which is the best option?