Present value of an annuity: Herm Mueller has invested in a fund that will provide him a cash flow of $11,700 for the next 20 years. If his opportunity cost is 8.5 per cent, what is the present value of this cash flow stream? (Round to the nearest dollar.)
A) $234,000
B) $132,455
C) $110,721
D) $167,884
Correct Answer:
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