What is the least you would sell the claim

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Please show work thank you so much! Please see picture. Congratulations: you just won a $1M lottery. But it will not pay the $1,000,000 until 10 years from today. Coincidentally, you were watching late night tv and heard an ad for one of those companies willing to buy your lottery prize today with an immediate single cash payment:

A. What is the least you would sell the claim for if you can earn 6% on an investment of comparable risk? Question b is on the picture.

Reference no: EM131757649

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