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1 . A lottery offers a prize of $ 1 , 0 0 0 , 0 0 0 . If the winner is paid in

1.A lottery offers a prize of $1,000,000. If the winner is paid in annual instalments of $25,000 for forty years. If you wish to sell the payment stream half way through the payment period, to a finance company for cash, how much in cash would you accept? Money can earn 5.6% at that time? please show workings

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