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You just won the $ 2 , 0 0 0 , 0 0 0 lottery. You can take a cash payout now of $ 1
You just won the $ lottery. You can take a cash payout now of $ or receive a year annuity of $ per year at the end of each year. If you have a required return of which is the better option? Hint: You need to compare these two options at the same point in time, either in today's dollars or in future dollars years from now. Show TVM inputs for partial credit.
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