A real estate investment has the following expected cash flows:

Year Cash Flows

1 $10,000

2 25,000

3 50,000

4 35,000

The initial cost is $85,000. The discount rate is 8.25 percent. What is the investment's present value?

a). $10,479

b). $13,479

c.) $16,479

d). $14,479

e). $15,479