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Jesse just won the state lottery. He has been given the option of receiving either $66.4 million today or $5 million a year for the
Jesse just won the state lottery. He has been given the option of receiving either $66.4 million today or $5 million a year for the next 30 years, with the first payment paid today. Describe the process that Jesse should use to determine which payment option he prefers. Ignore all taxes and assume that Jesse will live for at least 45 more years.
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