You Estimate That the Drive-Through Coffee Kiosk You Own Will

Multiple Choice

You estimate that the drive-through coffee kiosk you own will generate ordinary annuity after-tax cash flows of $120,000 per year for the next ten years.If you discount these cash flows at an annual rate of 11%,what is the present value of your expected cash flows?

A) $706,707.84
B) $782,417.35
C) $1,200,000.00
D) $2,900,594.27