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Question: A professor jokingly promises to give an engineering economics student $2,000,000 (F) exactly 23 years (n) from today, and the student replies that "since the median rolling inflation-adjusted rate of return of the S&P 500 index from 1923-2016 for such a long-term investment is 7.3% (i%), I would rather just have the present-value equivalent (P) today." What is the present-value equivalent (P) of the $2,000,000?

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