Lets assume that youve just won the lottery after purchasing one $5 lottery ticket. The state offers you three payout options for your after-tax prize money (assuming the interest rate = 8%):

Option 1: $1,000,000 now

Option 2: $150,000 at the end of each year for the next 10 years.

Option 3: $2,000,000 10 years from now

Question:

Which option you will choose and why? Show me your steps and calculation/reasoning clearly to get the 20 points.