Problemyou have just won the lottery and will receive, Ask an Expert

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Problem:

You have just won the lottery and will receive $1,000,000 in one year. You will receive payments for 25 years and the payments will increase 2.6 percent per year. If the appropriate discount rate is 6.6 percent,

Required:

Question: What is the present value of your winnings?

Note: Provide support for your rationale.

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