A wealthy relative has offered to finance their neice's veterinary education and practice set up through

19

end-of-year payments starting one year from now. The first two payments would be

$25,000

and

$22,000

in one and two years respectively, and then

$16,000

per year after that for

17

years. If the investment requires a return of

10.8%,

what is the present value of this stream of cash flows?

What is the present value of this stream of cash flows?