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Suppose you win the lottery. You have the choice between receiving the 25 annual payments of $1 million with the first payment happening immediately or

Suppose you win the lottery. You have the choice between receiving the 25 annual payments of $1 million with the first payment happening immediately or an immediate (up-front cash) payment of $17 million. Determine the present value difference between the two options given the interest rate of 5%.

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