Assume that you will receive $500 every other year, forever. If the first cash flow occurs three years from now and the interest rate is 8% compounded annually, what is the present value (i.e. present value at time 0) of this cash flow stream? Note that: first payment occurs in 3 years, second payment in 5 years, third payment in 7 years etc.

A.

$3,816.3

B.

$4,089.2

C.

$3,872.6

D.

$3,745.4

E.

$3,780.7