You are considering the purchase of an investment that would pay you $

You are considering the purchase of an investment that would pay you $5,000 per year for Years 1-5, $3,000 per year for Years 6-8, and $2,000 per year for Years 9 and 10.

If you require a 14% rate of return, and the cash flows occur at the end of each year, then how much should you be willing to pay for this investment?
A) $15,819.27
B) $21,937.26
C) $32,415.85
D) $38,000.00
E) $52,815.71

ANSWER

B