Mr. Zhu is selling his business for retirement. It is expected that the cash flows from his business in each of next 5 years will be$500,000. At the end of the 5years, the residual value of the business is expected to be$8 million. Mr. Zhu has his expected rate of return of12.0% . What could be the closest estimate to his"fair marketvalue" (of similarbusiness) at which he would be willing to sell hisbusiness?

A.

$6.34 million

B.

$6.50 million

C.

$5.80 million

D.

$6.00 million