TL Enterprises (TLE) is considering purchasing DMM. DMM has expected cash flows of $42,800, $56,700, and $37,100 for the next 3 years, respectively. After that, the products DMM produces will be obsolete and thus DMM will be worthless. If TLE requires a return of 18 percent, what amount should they offer as a purchase price?

Multiple Choice

• $85,868.09

• $102,247.79

• $91,216.57

• $87,141.41

• $99,572.45