Petro, Inc. operates an oil pipeline which will generate a $3 million revenue one year from today. The pipeline is expected to last forever. Revenues are expected to increase at a 5 percent growth rate per year. When the appropriate discount rate (required rate of return) is 13 percent, what is the present value of the pipeline's revenue?

Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a $40 million b $37.5 million c $33.3 million d $20 million e $16.7 million