Question: You have won a court judgment entitling you to a
You have won a court judgment entitling you to a structured settlement of $1,000,000, payable in 4 installments of $100,000, $200,000, $300,000, and $400,000 at the end of years 1, 2, 3, and 4, respectively. If your personal discount rate is 8%, what lump-sum payment today is economically equivalent to receiving the 4 payments spread over time?
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