1. Question Content Area

   Following is a table for the present value of $1 at compound interest:

   Year	6%		10%		12%
   1	0.943		0.909		0.893
   2	0.890		0.826		0.797
   3	0.840		0.751		0.712
   4	0.792		0.683		0.636
   5	0.747		0.621		0.567

   Following is a table for the present value of an annuity of $1 at compound interest:

   Year	6%		10%		12%
   1	0.943		0.909		0.893
   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 provided, 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, the present value of the investment cash inflows, assuming an earnings rate of 12%, is

   a.$21,259

   b.$20,352

   c.$3,969

   d.$22,190