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You are planning to buy a lottery ticket for the $10,000,000 jackpot. If you have (Option A). the cash option of receiving $8,000,000 today or

You are planning to buy a lottery ticket for the $10,000,000 jackpot. If you have (Option A). the cash option of receiving $8,000,000 today or you can opt to choose (Option B). the 20 payments of $400,000. Your investment account earns 5% interest compounded annually.

What is the present value of OPTION B?

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