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Jill has just won the lottery. She will receive semi-annual payments of $24,000 commencing in 6...

Jill has just won the lottery. She will receive semi-annual payments of $24,000 commencing in 6 months time and growing at 1.8% each half-year, forever. If the interest rate is 7.1% per annum compounded semi-annually, the value of this stream of cash flows today is (to the nearest whole dollar; don’t include $ sign or commas):

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Solution: semi annual interest rate=7.1%/2 3.55% | 1,371,429 | value of cash flow=Cash flow /(semi annual interest rate-growt

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