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You have just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $670,000 per year. Thus,

You have just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $670,000 per year. Thus, in one year you receive $1.67 million. In two years, you get $2.34 million, and so on. If the appropriate interest rate is 7.7 percent, what is the value of your winnings today?

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