How much is the choice worth today

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Question: 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 yearfor the next 30 years, which he could than invest in a financial instrument that will pay him 6%. Ben decides to take the annual payments.

How much is the choice worth today?

Reference no: EM131944640

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