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Several years ago, a man won $ 2 7 million in the state lottery. To pay off the winner, the state planned to make an

Several years ago, a man won $27 million in the state lottery. To pay off the winner, the state planned to make an initial $1
million payment today followed by equal annual payments of $1.3 million at the end of each year for the next 20 years. Just
before receiving any money, the man offered to sell the winning ticket back to the state for a one-time immediate payment of
$14.4 million.
If the state uses a 6%/year MARR and a future worth analysis, should it accept the man's offer?
What is the future worth of the state's original 20-year plan? $
million
What is the future worth of the man's one-time offer? $
million
Carry all interim calculations to 5 decimal places and then round your final answer to the nearest whole number (in millions of dollars).
The tolerance is +-2.
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