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1. Jackpot. You win a $10 million lottery jackpot, but then you nd that the payout is actually $2 million per year for 5 years.

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1. Jackpot. You win a $10 million lottery jackpot, but then you nd that the payout is actually $2 million per year for 5 years. Assuming there is no ination over that time, and assuming a discount rate of r = 0.05, what is the present value of your jackpot

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