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You have just won the lottery and will receive $ 6 0 0 , 0 0 0 in one year. You will receive payments for

You have just won the lottery and will receive $

600, 000

in one year. You will receive payments for

20

years, which will increase

3

percent per year. The appropriate discount rate is

11

percent.

Required:

What is the present value of your winnings?

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