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James wins a lottery worth $800,000. The lottery company tells James that he can either: 1. take the money right now or 2. get equal

James wins a lottery worth $800,000. The lottery company tells James that he can either: 1. take the money right now or 2. get equal payments of $52,000 at the end of every year indefinitely. The first payment would be one year from now if James chooses the second option. Assume the discount rate is 5%, which option should James choose? Why?

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