You Expect Annual Cash Flows from a Certain Property as Follows

Multiple Choice

You expect annual cash flows from a certain property as follows: $\begin{array}{|c|c|}\hline \text { Year 1 } & \$ 20,000 \\\hline \text { Year 2 } & \$ 22,000 \\\hline \text { Year } 3 & \$ 30,000 \\\hline \text { Year } 4 & \$ 31,000 \\\hline \text { Year } 5 & \$ 40,000 \\\hline\end{array}$ In addition, you expect that you can sell the property at the end of the 5^th year for 10 times its expected cash flow that year. If the opportunity cost of capital is 10% per year, then what is the net present value NPV) of a deal in which the investor has to pay $350,000 for the property at the end of Year 0, one year prior to the first cash flow) ?

A) -$19297.
B) +$3,282.
C) +$38,610.
D) None of the above.