The overhead costs in a highly automated factory are expected to increase at an annual compound rate of 10% for the next 7 years. The overhead cost at the end of the first year is $200,000. What is the annual worth of the overhead costs for the 7-year period? The time value of money rate is 8%/year.

A) $187,020

B) $200,000

C) $231,520

D) $263,250