Rick's Repairs, Inc. is considering renting a new shop. The landlord has offered a number of alternatives for paying the rent. The present value factors at the company's rate of return are as follows:

Period

Present Value Factor

1

0.90909

2

0.82645

3

0.75131

The landlord offered a 2-year lease with $20,000 to be paid for rent at the end of each year.

The present value of rent payments over the life of the lease is:

Select one:

A.$20,000

B.$33,208

C.$34,711

D.$40,000