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You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 this year and grow at a rate of 5%

You win a scratch off lottery ticket that promises to pay an initial payment of 10,000 this year and grow at a rate of 5% forever. If the discount rate is 8%, what is the present value of this investment?

$350,000.00

$400,000.00

$300,000.00

$500,000.00

None of the above

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