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Sol 15 Suppose you win the lottery and are given a choice to collect either the grand prize of $5 million in 10 annual installments

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Sol 15 Suppose you win the lottery and are given a choice to collect either the grand prize of $5 million in 10 annual installments of $500,000, or collect an immediate one-time pay- ment of $4 million today. If the interest rate is 5% and that is what you use to discount future earnings, which option should you select to maximize the present value of the winnings

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