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a. You have just won the lottery. You and your heirs will receive $25,000 forever beginning one year from now. What is the present value
a. You have just won the lottery. You and your heirs will receive $25,000 forever beginning one year from now. What is the present value of your winnings at a discount rate of 7%?
b. What would be the present value of the lottery win if the first payment were received today?
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