A Company Has Just Sold a Product with the Following

Multiple Choice

A company has just sold a product with the following payment plan:

$75,000 today, $50,000 at the end of year 1, and $25,000 at the end of year two. If the payments are deposited into an account earning 4.5% per year, calculate the present value for the cash flow.

A) $145,740
B) $165,323
C) $175,536
D) $185,643
E) $193,466