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8. You win the lottery! The lottery offers you $5 million today OR $7 million in...

8. You win the lottery! The lottery offers you $5 million today OR $7 million in 5 years. The interest rate is 5%.

a. Calculate the present value of waiting to receive the $7 million

b. From a purely financial perspective, should you wait or take the money now?

c. Would your answer be different if the interest rate were 10%? Why or why not?

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