Computing the present value of this investment

Reference no: EM1312352

Transit Insurance Company has made an investment in another company that will guarantee it a cash flow of $37,250 each year for the next five years. If the company uses a discount rate of 15 percent on its investments, what is the present value of this investment? (Round to the nearest dollar.)

a) $101,766

b) $124,868

c) $251,154

d) $186,250

Reference no: EM1312352

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