Below is a table for the present value of $1 at compound interest.

Income from Net cash Year operations flow

1 $100,000 $180,0000

2 $40,000 120,000

3 40,000 100,000

4 10,000 90,000

5 10,000 120,000 Below is a table for the present value of an annuity of $1 at compound interest. Year 6% 10% 12%

1 .943 .909 .893

2 1.833 1.736 1.690

3 2.673 2.487 2.402

4 3.465 3.170 3.037

5 4.212 3.791 3.605 Using the tables above, if an investment is made now for $20,000 that will generate a cash inflow of $7,000 a year for the next 4 years, what would be the net present value (rounded to the nearest dollar) of the investment cash inflows, (assuming an earnings rate of 12%)? a. $22,190 b. $21,259 c. $20,352 d. $3,969