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You have just won the lottery and will receive $570,000 in one year. You will receive payments for 29 years, which will increase 4 percent

You have just won the lottery and will receive $570,000 in one year. You will receive payments for 29 years, which will increase 4 percent per year. The appropriate discount rate is 10 percent.

Required:

What is the present value of your winnings?

Multiple Choice

$38,821,970
$7,327,027
$35,932
$7,632,320
$38,821,970

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