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You have just won the lottery and will receive $620,000 in one year. You will receive payments for 15 years, which will increase 3 percent

You have just won the lottery and will receive $620,000 in one year. You will receive payments for 15 years, which will increase 3 percent per year. The appropriate discount rate is 12 percent.

Required:

What is the present value of your winnings?

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