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You win the lottery and are offered the following choices. The appropriate discount rate is 7%. How much is each worth? Which would you choose?

  1. You win the lottery and are offered the following choices. The appropriate discount rate is 7%. How much is each worth? Which would you choose?

  1. $3M today and $3M exactly 3 years from today

  1. $2M a year for 4 years, with the first payment starting exactly one year from today

  1. $350K a year forever, with the first payment starting one year from today

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