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Bob's Lottery Inc. has decided to offer winners a choice of $175,000 in 10 years or some amount currently. Assume that Bob's Lottery Inc. earns

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Bob's Lottery Inc. has decided to offer winners a choice of $175,000 in 10 years or some amount currently. Assume that Bob's Lottery Inc. earns a 11 percent after-tax rate of return. What amount should Bob's offer lottery winners currently, in order to be indifferent between the two choices? Use Exhibit 3.1 Amount

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