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Recently, a friend of your family won the lottery! They were given two options for the payout: ( A ) A lump sum ( immediately
Recently, a friend of your family won the lottery! They were given two options for the payout: A A lump sum immediately of $ million; or B Twenty annual payments of $ million starting at the end of the first year subsequent to winning.
Using the scenario above, address the following prompt:
What equilibrium interest rates explain your assumptions?
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