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An investor signed a contract to receive a $170,000 payment for the purchase of his warehouse in 5 years from today from the tenant who

An investor signed a contract to receive a $170,000 payment for the purchase of his warehouse in 5 years from today from the tenant who currently rents the warehouse. The tenant will continue to pay $20,000 rent at the beginning of each year with the first payment in one year from today. The investor's required rate of return is 10%. What is this deal presently worth to the investor? (hint, pay attention to the number of payments and when they occur, also would you pay rent when you own the property?)

A. $187,538

B. $194,574

C. $206,992

D. $214,443

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