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You have just won the lottery and will receive $480,000 in one year. You will receive payments for 29 years, which will increase 5 percent

You have just won the lottery and will receive $480,000 in one year. You will receive payments for 29 years, which will increase 5 percent per year. The appropriate discount rate is 11 percent.

Required:

What is the present value of your winnings?

$23,274

$32,083,598

$6,147,204

$32,083,598

$6,403,337

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