4. Cash now. Suppose a lottery winner wins a S 1 million dollar lottery. The...
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4. Cash now. Suppose a lottery winner wins a S 1 million dollar lottery. The winner may take the winnings either as ten S 100,000 annual payments, or as a lump sum payment. Use the concept of discounting and present value to determine an equiva lent lump sum payment if the effective annual interest rate is 5%
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