You inherited an oil well that will pay you $12,000 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) $178,306.55
B) $171,116.77
C) $135,167.87
D) $143,795.60
E) $175,430.63
Correct Answer:
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