You Have the Opportunity to Purchase Mineral Rights to a Property

Multiple Choice

You have the opportunity to purchase mineral rights to a property in Wyoming with expected annual cash flows of $8,000 per year for ten years.If you discount these cash flows at a rate of 12% per year,what are these cash flows worth today if the cash flows occur at the end of each period?

A) $45,201.78
B) $49,676.40
C) $80,000.00
D) $122,996.93