A streaming service agrees to license all episodes of Friends for $$100$ million per year for the next $10$ years. Those annual amounts are broken up into $4$ quarterly payments of $$25$ million each with the first payment due $3$ months from today. If the annual required return for this investment is $12\mathrm{.}5\%,$ what is the present value of this investment if we compound quarterly, and what does that tell us about what's needed to make this a good deal for the streaming service?

The present value of all other cash flows generated from the deal must exceed $$566\mathrm{.}37$ million.

All other cash flows generated from the deal must exceed $$566\mathrm{.}37$ million.

All other cash flows generated from the deal must exceed $$553\mathrm{.}64$ million.

The present value of all other cash flows generated from the deal must exceed $$553\mathrm{.}64$ million.