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A sweepstakes winner may select either a perpetuity of 2,000 a month beginning with the first payment in one month or an immediate lump sum

A sweepstakes winner may select either a perpetuity of 2,000 a month beginning with the first payment in one month or an immediate lump sum payment of 350,000. If the annual discount rate is 6% compounded monthly, the present value of the perpetuity is: A) less than the lump sum. B) equal to the lump sum. C) greater than the lump sum.

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