You Have Just Turned 27 and May Now Spend a Portion

Multiple Choice

You have just turned 27 and may now spend a portion of the trust fund your parents established for you.The terms of the trust fund allow you to withdraw 50 beginning-of-the-year cash flows of $40,000 each.An investment firm has offered to pay you cash for all of the fund today.If the rate they use to discount the cash flows is 14% per year,what is their offer price today for your pension fund?

A) $2,605,750,853
B) $2000,000.00
C) $624,915.20
D) $325,249.13