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You have just won the lottery and will receive $510,000 in one year. You will receive payments for 27 years, which will increase 4 percent

You have just won the lottery and will receive $510,000 in one year. You will receive payments for 27 years, which will increase 4 percent per year. The appropriate discount rate is 11 percent.

Required:

What is the present value of your winnings?

rev: 09_17_2012

Multiple Choice

$35,009,614
$35,009,614
$6,030,691
$5,789,463
$30,468

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