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You have just won a government lottery for $12 million. However, when you go to collect the prize, they explain that you are entitled to
You have just won a government lottery for $12 million. However, when you go to collect the prize, they explain that you are entitled to receive $100,000 per month for 10 years (this adds to $12 million). Alternatively, you may choose to receive a one-time payment now of $10,607,840. What is the implied discount rate the government is using?
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