Assume an individual makes a lump sum investment at the beginning of year one of $38,420, the present value of which is $38,420. The investors discount rate, for an alternative safe investment, is 11.40 percent after tax. The expected return on this investment (received at each year-end) is as follows. Year 1: 1,680 Year 2: 18,372 Year 3: 17,981 Year 4: 8,482 Year 5: 4,638