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Choice between accepting a lump sum payment

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Ben just won the lottery and has a choice between accepting a lump sum payment of $5,000,000 or annual payments of $375,000 at the end of each year for the next 30 years, which he could then invest in a financial instrument that will pay him 6%. Ben decides to take the annual payments.

How much is this choice worth today?

Reference no: EM131579029

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