Mustard's Inc

Multiple Choice

Mustard's Inc. sold the rights to use one of their patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is:

A) $10,699.
B) $11,468.
C) $12,100.
D) $14,000.