Suppose That an Income Producing Property Is Expected to Yield

Multiple Choice

Suppose that an income producing property is expected to yield cash flows for the owner of $150,000 in each of the next five years, with cash flows being received at the end of each period. If the opportunity cost of investment is 8% annually and the property can be sold for $1,250,000 at the end of the fifth year, determine the value of the property today.

A) $304,704.00
B) $1,449,635.50
C) $1,481,143.98
D) $2,000,000.00