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You are lucky to hit the lotto. The prize is 2 million. You have the option (1) to receive a single amount only once,
You are lucky to hit the lotto. The prize is 2 million. You have the option (1) to receive a single amount only once, (2) to receive an identical annuity each year, for 20 years. Ignore the tax. Discount rate 4.5% What is the present value of option 1? What is the present value of option 2?
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