You inherited an oil well that will pay you $39,000 per year for 25 years,with the first payment being made today.If you think a fair return on the well is 7.5%,how much should you ask for it if you decide to sell it?
A) $565,476.20
B) $359,848.49
C) $387,888.64
D) $467,335.71
E) $579,496.27
Correct Answer:
Verified
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