You Have the Opportunity to Purchase Mineral Rights to a Property

Multiple Choice

You have the opportunity to purchase mineral rights to a property in North Dakota with expected annual cash flows of $10,000 per year for eight years.If you discount these cash flows at a rate of 12% per year,what are these cash flows worth today if the cash flows occur at the end of each period?

A) $55,637.57
B) $49,676.40
C) $80,000.00
D) $122,996.93