Suppose That a Property Can Generate Cash Flows of $10,000

Multiple Choice

Suppose that a property can generate cash flows of $10,000 per year for eight years and can sell for $80,000 at the end of the investment period. Assuming a discount rate of 10%, what is the present value of this property (Assume end of period cash flows in your calculation) ?

A) $117,320
B) $160,000
C) $133,349
D) $90,670