Assume all cash flows occur at the end of the period

1. You have a rich Aunt Ernestine, who recently passed on. In her will, she stipulated you would receive $1,000 a year through age 25; then you will receive $2,500 a year through age 30, then you are to get $5,000 a year through 40 years of age, at which time your payments will cease. You just had your twentieth birthday today (hint: your first cash flow occurs one year from now on your twenty-first birthday). At your twentieth birthday party, a woman offered you $30,000 for the right to your inherited cash flow. Assuming an opportunity cost of eight percent, what is the difference between the amount the woman offers you and the present value of your cash flows? Should you take the offer?