What is present value of your winnings

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Reference no: EM131828958

You just won the TVM Lottery. You will receive $1 million today plus another 10 annual payments that increase by $640,000 per year. Thus, in one year you receive $1.64 million. In two years, you get $2.28 million, and so on. If the appropriate interest rate is 7.4 percent, what is the present value of your winnings?

Reference no: EM131828958

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