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You are thinking of buying a miniature golf course to operate. It is expected to generate cash flows of $40,000 per year in years one

You are thinking of buying a miniature golf course to operate. It is expected to generate cash flows of $40,000 per year in years one through four and $50,000 per year in years five through eight. If the appropriate discount rate is 10%, what is the present value of these cash flows?

a. $285,288

b. $167,943

c. $235,048

d. $828,230

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