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The winner of a lottery is awarded $6,000,000 to be paid in annual installments of $300,000 for 20 years. Alternatively, the winner can accept a
The winner of a lottery is awarded $6,000,000 to be paid in annual installments of $300,000 for 20 years. Alternatively, the winner can accept a "cash value" one-time payment of $2,700,000. The winner estimates he can earn 8% annually on the winnings. What is the present value of the installment plan? (Round your answer to two decimal places.)
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