Garcia Company is considering a $365,000 investment with the following net cash flows. Garcia requires a 13% return on its investments. The present value of this investment is:

Annual Net Cash Flows Present Value of $1 at 13%

Initial investment 1.0000

Year 1 $ 125,000 0.8850

Year 2 85,000 0.7831

Year 3 145,000 0.6931

Year 4 255,000 0.6133

Year 5 75,000 0.5428

Select one:

a.$474,790

b.$220,415

c.$150,500

d.$109,790