Suppose you have a winning sweepstakes ticket and you are

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Suppose you have a winning sweepstakes ticket and you are given the option of accepting $250,000 three years from now or taking the present value of the $250,000 now. The sponsor of the prize uses a 7% discount rate. If you elect to receive the present value of the prize now what amount will you receive now?

Reference no: EM13581567

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