Kristen Nash recently won the jackpot in the New Jersey lottery while she was visiting her parents. When she arrived at the lottery office to collect her winnings, she was offered the following three payout options:
a. Receive $5,000,000 in cash today.
b. Receive $2,000,000 today and $600,000 per year for 10 years, with the first $600,000 payment being received one year from today.
c. Receive $1,000,000 per year for 10 years, with the first payment being received one year from today.
Assuming that the effective rate of interest is 9%, which payout option should Kristen select? Explain your answer and provide any necessary supporting calculations.