Finn Kilgallon recently won the jackpot in the Wisconsin lottery while he was visiting his parents. When he arrived at the lottery office to collect his winnings, he was offered the following three payout options:
a. Receive $10,000,000 in cash today.
b. Receive $2,200,000 today and $1,050,000 per year for 15 years, with the first $1,050,000 payment being received one year from today.
c. Receive $1,200,000 per year for 15 years, with the first payment being received one year from today.
Assuming that the effective rate of interest is 12%, which payout option should Finn select? Explain your answer and provide any necessary supporting calculations.