Goldman gave you an offer for a payment stream, which you now need to evaluate in detail. Your alternative to this investment is an investment that will generate a 5.9% annually. Goldman's offer: They will give you $145 next year. For every year after that they will increase the amount they give you by 3.1% (each year) and will do so until the end of 20 years from now.

a. What is the value of Goldman's offer?