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At the Tuesday night league bowl, your bowling buddies, Bob and Bobbie Bobbitt (B), told you that they had won a $4,000,000 million lottery jackpot

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At the Tuesday night league bowl, your bowling buddies, Bob and Bobbie Bobbitt (B), told you that they had won a $4,000,000 million lottery jackpot and were going to claim the prize later that week. On bowling night the following week, B were bummed when they told you that when they went to claim their prize, the net after tax lump sum distribution amount to be paid was only $2.261,430.30. B said that the lottery official explained that the $4,000,000 referred to a series of 20 annual payments of $200,000 beginning immediately, not a lump sum. The official also explained that they were required to deduct 20% of the lump sum payout for Federal Income Tax before making the distribution. You have been telling B how much you enjoy the course Fundamentals of Corporate Finance. Therefore, B thought you might be able to help them understand how their $4,000,000 winning became only $2,261,430.30. How would you explain this to B?? This requires at least two computations to

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