Congratulations! You have won a state lottery. The state lottery offers you the following (after-tax) payout options:

Option #1: $15,000,000 after five years.

Option #2: $2,150,000 per year for five years.

Option #3: $13,000,000 after three years.

Assuming you earn 8% on your funds, which option would you prefer?

Requirements:

Find PV of each option, and determine which is the best option.