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Assume you have won the lottery ( tax freel ) and have the choice of receiving $ 1 , 0 0 0 , 0 0
Assume you have won the lottery tax freel and have the choice of receiving $ now or $ payments each year for years. If the opportunity cost of capital is which alternative would you choose?
Take $ nowl
Take $ payments!
You would be indifferent as to how you received your winnings.
Cannot be determined.
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