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You have just won the lottery and will receive $600,000 in one year. You will receive payments for 18 years, and the payments will increase

You have just won the lottery and will receive $600,000 in one year. You will receive payments for 18 years, and the payments will increase 3 percent per year. If the appropriate discount rate is 11 percent, what is the present value of your winnings?

Multiple Choice

$21,327,358

$5,548,729

$21,327,358

$91,693

$5,326,780

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