Answer the following.

a.

b.

Molly, president of Molly's Muffins, is considering franchising. She has a potential franchise agreement that would see her receive payments of $28,000, $24,000, and $20,000 at the end of years 1, 2, and 3 respectively, and then $12,000 per year after that for 17 years. If Molly requires a return of 10%, then what is the present value of this stream of cash flows? (R answer to the nearest whole dollar ound O A. $132,636 O B. $124,440 O C. $143,354 O D. $156,574 O E. $145,900