You Are Paid to Teach Graduate-Level Classes for the University

Multiple Choice

You are paid to teach graduate-level classes for the university and want to determine how much money the university makes from your graduate-level classes.Based on historical data,you estimate that your graduate classes for the next six years will generate an average annual revenue of $99,850.If you discount these cash flows at an annual rate of 7.30%,what is the present value of the expected cash flows?

A) $895,133.52
B) $483,644.36
C) $471,562.95
D) $423,786.85