The Lease on a New Office Requires an Immediate Payment

Multiple Choice

The lease on a new office requires an immediate payment of $24,000 plus $24,000 per year at the end of each of the next 10 years. At a discount rate of 14 percent, what is the present value of this stream of lease payments?

A) $130,872
B) $149,194
C) $142,710
D) $264,000